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Nifty regains 7,900-mark to rise by 1.35 per cent; Rupee at 65.58

sensex

Mumbai :Nifty rallied by 105 points, regaining 7,900-mark to rise by 1.35 per cent, recording its biggest single-day percentage gain in three weeks on upbeat global market and a bigger-than expected rate cut by the Central bank yesterday, continued to boost the sentiments.

All sectors were in the green with the exception of bank stocks that saw some profit taking. FMCG, Energy, Auto and Pharma stock were in limelight.

Shares of Mid-cap and Small-cap also witnessed firm buying by 1.91 and 1.17 percent, respectively.

The 50-share Nifty traded between a high of 7,957.70 and a low of 7,874.50 before closing at 7,948.90, showing a smart rise of 105.60 points, or 1.35 pct, from previous close.

In Asia, Japanese stocks rose on expectations for more monetary and fiscal stimulus after the latest data showed that Japanese industrial output fell unexpectedly for the second straight month in August. Chinese stocks nudged higher after a private consumer sentiment index reached its highest level in over a year in September 2015.

European stocks also edged higher in early trade.

Top five gainers were: Cairn by 6.44 per cent, Idea 6.23 per cent, Tata Steel 6.21 per cent, Gail 4.90 per cent and Bharti Airtel by 4.68 per cent.

Other notable gainers were Hindalco, Asian Paints, BHEL, Hindustan Unilever and Power Grid.

Key losers were, Bank of Baroda, Tech Mahindra, SBIN, Tata Power, Axis Bank, PNB, Yes Bank, Ultra Cement and Vedl.

Turnover in the cash segment eased to Rs 20,156.03 crore against Rs 20,553.62 crore yesterday. A total of 9,010.36 lakh shares changed hands in 86,95,839 trades, while market capitalisation stood at Rs 94,91,609 crore. The rupee surged to its highest level in five weeks to end at 65.58 by gaining 38 paise against the US currency as exporters and banks stepped up dollar sales amid aggressive policy measures from the RBI.

Strong rally in equity markets and softening dollar sentiment overseas too aided the home currency.

The home currency has now appreciated by 58 paise in three straight days despite consistent unwinding by foreign investors from equities and debt markets.

Taking comfort from US Fed rate hike delay and easing inflationary pressure, the Reserve Bank slashed the repo rate by 50 basis points to 6.75 per cent from 7.25 per cent and announced a roadmap to increase foreign investment in sovereign securities.

This apart, the Reserve Bank also announced a medium-term framework that will increase government bond limits for foreign portfolio investment (FPI) limit in a phased manner.

The domestic currency resumed firmly higher at 65.87 per dollar compared to overnight closing level of 65.96 at the Interbank Foreign Exchange market on persistent selling of dollars by banks and exporters.

Rupee

Riding higher on strong overall bullish sentiment, rupee strengthened further to close at day’s highest level of 65.58, showing a smart gain of 38 paise, or 0.58 per cent – the level not seen since August 20, this year.

In overseas market, dollar edged higher against the other major currencies on Wednesday ahead of Federal Reserve Chair Janet Yellen speech later in the day.

The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up by 0.43 per cent at 96.46.

PTI