Sensex recovers 167 points

Rally in Reliance and financial sector stocks

June 30, 2010 09:37 am | Updated November 28, 2021 09:03 pm IST - Mumbai

The Bombay Stock Exchange sensitive index, Sensex, on Wednesday recouped early losses to end the day higher by 167 points after a firm opening in European bourses buoyed sentiment.

The 30-share index closed at 17700.90, up 166.81 points, after Reliance Industries and financial stocks rallied at the fag-end of trading.

The National Stock Exchange's wide-based 50-share Nifty index added 1.07 per cent to finish at 5312.50 against 5256.15.

Reliance Industries (RIL) ended up close to 2 per cent at Rs. 1,086.90 amid reports that the petrochemicals giant is close to signing a joint venture deal with the U.S.-based private equity and hedge fund giant DE Shaw. The deal, when signed, will see the Mukesh Ambani-led company entering the financial services sector.

RIL has been on gaining spree since petrol prices were deregulated last Friday, barring its 2 per cent loss on Tuesday when the markets were hammered.

Banking stocks bounced back, a day after being battered on fears of an imminent rate hike. ICICI Bank rose 1.55 per cent to Rs. 862, HDFC Bank 0.57 per cent to Rs. 1,914.65 and HDFC 1.36 per cent to Rs. 2,941. SBI, which fixed its base rate at 7.5 per cent, rose 0.31 per cent to Rs. 2,032.10.

Sentiment turned bullish on Dalal Street in the second-half after European bourses edged higher on the European Central Bank's announcement that it would lend $161 billion to banks, allaying fears of a liquidity crisis in the region, they said.

Asian bourses dropped for another session on Wednesday, with China's Shanghai index losing 1.18 per cent and Japan's Nikkei 1.96 per cent. Europe was firm at mid-session.

Marginal gain in rupee

Tracking movements in domestic equities, the rupee recouped initial losses against the dollar and closed at 46.45 on Wednesday. It closed at 46.49 on Tuesday. The domestic currency opened sharply lower at 46.70/71. However, it later rebounded to a high of 46.41 before concluding at 46.44/45.

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