Rally in information technology, metal counters help recovery
MUMBAI: A sharp rally in IT and metal counters, following renewed buying by funds, helped the Bombay Stock Exchange sensitive index, Sensex, recover early losses and snap a four-day fall on Wednesday. It gained 87 points despite weak Asian cues and almost flat European opening.
The BSE barometer initially touched a more-than two weeks low of 17276.46 but bounced back to settle at 17509.80, up 87.29 points.
The rebound was led by IT and metal counters. IT stocks such as TCS, Infosys, Tech Mahindra and Wipro continued to be in favour following better-than-expected third quarter results by Infosys. The BSE IT index rose by 3.84 per cent.
The BSE-IT index spurted by 199.35 points or 3.84 per cent, mainly helping the Sensex gain. The metal index improved 0.75 per cent led by Hindalco and Tata Steel. The broad-based 50-share Nifty of the National Stock Exchange recouped 23.55 points to end at 5233.95.
Meanwhile, Finance Minister Pranab Mukherjee pegged the economic growth for the current fiscal at 7.75 per cent, higher than all earlier estimates, following the stupendous IIP data released on Tuesday, but said high food inflation remained a cause of concern.
The overall market breadth remained positive as 1,692 counters ended with gains while 1,195 finished with losses on the BSE.
Rupee looks up
The rupee on Wednesday rose by 10 paise against the dollar in line with the equities market amid moderate selling of the U.S. currency by exporters.
In fairly active trading at the inter-bank foreign exchange market, the rupee opened slightly better at 45.68/70 against its previous close of 45.72 when it lost a hefty 38 paise. It later moved in a range of 45.55-45.74 before ending the day at 45.61/62. — PTI