Foreign institutional investors continue to buy across sectors
MUMBAI:The Bombay Stock Exchange benchmark index, Sensex, on Wednesday regained the psychological 17000-mark after six weeks by ratcheting up 227 points on hectic buying by foreign funds across counters, stretching the budget rally to the third day.
The market leader Reliance Industries led the rally, gaining by 3.90 per cent to Rs. 1,021.95 after U.S. media reports said Lyondell Basell had rejected the $14.5-billion takeover bid by the domestic petrochem giant for the bankrupt U.S. chemicals major.
Foreign institutional investors continued to buy across the board and the demand was so strong that all sectoral indices ended in the green with oil & gas, realty, power, FMCG and banking in the lead.
Apart from Reliance, Jaiprakash Associates and Tata Power, NPTC and M&M too aided the market with a 6.14 per cent and 5.08 per cent rally respectively. The BSE 30-share barometer remained in the green throughout the day after opening 120 points up and closed above the psychological 17000-mark, a level not seen since January 21, netting a gain of 227.45 points or 1.36 per cent at 17000.01 after touching the day's high of 17012.61.
The wide-based Nifty-50 of the National Stock Exchange surged 71.10 points or 1.42 per cent to 5088.10. It touched a high of 5093.25 after opening 35.55 points up. Angel Broking Chairman Dinesh Thakkar said, “FIIs are buying heavily since the budget. The good side of the budget is still not discounted in the prices. The post-budget rally will continue for sometime more as FIIs have ample liquidity now. It seems positive side of the budget is overweighing the current negative global cues.”
Rupee at six-week high
Moving in tune with stock markets, the rupee on Wednesday gained 19 paise to close at over six-week high of 45.82/83 against the U.S. dollar.
It closed at 46.01/02 on Tuesday. Forex dealers attributed the sustained rise in rupee for the past three days to relentless dollar selling by exporters amid an upsurge in stocks which on Wednesday regained the psychologically important 17000-level after six weeks. — PTI