BUSINESS

Wild swings in equities after a historic rally

MUMBAI: In highly volatile trading, equities consolidated their positions on Tuesday after witnessing historic rise on Monday, enthused by the return of the United Progressive Alliance (UPA) Government at the Centre, which is expected to give political stability and economic progress.

The benchmark BSE 30-share sensitive index (Sensex) gained marginally at close, 17.82 points at 14302.03 as compared to the previous day’s close of 14284.21.

On Monday, the Sensex surged 2110.79 points or 17.34 per cent. Marking high volatility, the Sensex moved between 14757.82 and 13834.13 in Tuesday’s trading.

However, the broader NSE 50-share Nifty closed lower at 4318.45, a loss of 4.70 points or 0.11 per cent, as compared to the previous close of 4323.15. In a trade where sentiments were mixed, realty sector surged 12.80 per cent followed by banks 6.84 per cent, consumer goods 6.33 per cent, automobile 3.64 per cent, power 3.18 per cent, metal 3.02 per cent and PSU 2.65 per cent.

Generally, economy-related sectors were gaining. However, IT sector was the biggest loser with fall of 10.10 per cent followed by Tech 5.12, FMCG 4.12 and oil and gas 3.18.

The market sentiment was bolstered largely by hopes of heavy capital inflows in the coming days, which is prompted by a clear mandate for the Congress-led UPA, which is expected to give thrust to social justice and reforms.

Rupee gains further

The rupee strengthened against the dollar again on Tuesday and closed at 47.78/80 against 47.88/89 on Monday, amid high-level volatility in domestic stock markets.

The interbank foreign exchange market saw wide movements between 47.26 and 47.94, after resuming stronger at 47.48/50.

Forex dealers said the rupee pared its early gains after hitting the day’s high of 47.26 due to dollar-buying by some state-owned banks. — PTI

Recommended for you