PRESS TRUST OF INDIA
Mumbai, 10 September
Markets were on fire with the Sensex zooming to near 20,000 mark and the rupee gaining 140 paise today on the back of strong export and car sales data and receding concerns over a US attack on Syria.
Stock market investors became richer by a staggering Rs 2 lakh crore as six out of every 10 stocks gained on the Bombay Stock Exchange.
A slide in oil prices and robust Chinese economic data also helped domestic markets log gains for the fourth day in a row.
The 30-share Sensex today breached the 20,000 mark for the first time since 25 July, before settling at 19,997.10, higher by 727.04 points or 3.77 per cent.
In four days, it has vaulted by over 1,762 points or nearly 10 per cent.
The rise was the biggest in absolute terms since the Sensex surged 2,110.79 points, or 17.34 per cent, on 18 May 2009, when the UPA government came to power.
All sectoral indices gained, led by auto, capital goods and FMCG stocks. The top Sensex winners were Tata Motors, Bharti Airtel, Hero MotoCorp and Larsen and Toubro.
The NSE Nifty index jumped 216.35 points, or 3.81 per cent, to 5,896.75, after touching 5,904.85.
In the currency markets, the rupee touched an over two-week high of 63.78 against the US dollar and closed at 63.84, up a whopping 140 paise compared to previous close of 65.24.
The rupee resumed higher at 64.40 a dollar from Friday’s close of 65.24 and touched a low of 64.54 at the interbank foreign exchange market.
It later bounced back to breach the 64 mark and touch a high of 63.78 before settling at 63.84, a rise of 140 paise or 2.15 per cent.
Besides a weak dollar overseas, foreign institutional investors (FIIs) buying equities worth over Rs 2,500 crore today helped the rupee surge the most in nearly two weeks.
Brokers said the local currency is expected to strengthen further. In four days, the rupee has risen 379 paise or 5.6 per cent.
The threat of US action against Syria eased, with Washington saying it will consider Russia’s call for Syria to place its chemical weapons to international control.
The sustained rally in the markets was also driven by investors pinning hopes on RBI Governor Raghuram Rajan unleashing financial sector reforms in a bid to revive an economy that grew at its slowest pace in a decade last fiscal.
Meanwhile, gold prices witnesses yet another forgettable day with prices dropping by Rs 550 in Mumbai, Rs 405 in Kolkata and Rs 55 in Chennai. However, it rose by Rs 270 in New Delhi.