Sensex recovers 130 points ahead of RBI policy

 

After two sessions of losses, the benchmark BSE Sensex rose over 130 points in early trade on Tuesday on fresh spell of buying by participants ahead of RBI’s monetary policy review. 

The 30-share index, which had lost 559.50 points in the previous two sessions, recovered by 130.79 points, or 0.44 per cent, to 29,253.06, with consumer durables, FMCG, oil & gas, auto and banking sector stocks leading the rise. 

On similar lines, the National Stock Exchange index Nifty gained 26.00 points, or 0.30 per cent, to 8,823.40 in early trade. 

Brokers said besides mixed trend at other Asian bourses and overnight gains in the US markets, selective buying by cautious funds and retail investors ahead of RBI’s policy review due later in the day influenced sentiments. 

Among other Asian markets, Hong Kong Hang Seng moved up 0.24 per cent, while Japan’s Nikkei shed 0.27 per cent in early trade today. 

The US Dow Jones Industrial Average ended 1.14 per cent higher in Monday’s trade.

Rupee up 15 paise against dollar

 

The rupee strengthened by 15 paise to 61.65 against the US dollar in early trade on Tuesday at the Interbank Foreign Exchange on increased selling of the American currency by exporters ahead of RBI’s policy review.

Dealers said increased selling of the dollar by exporters and a higher opening in the domestic equity market supported the rupee but the greenback’s rise against some overseas currencies capped the gains.

The rupee had gained six paise to close at 61.80 against the American currency in yesterday’s trade on fag-end selling pressure from banks and exporters due to a weak dollar in the overseas markets.

Sensex trims its initial losses, down 41 points

The S&P BSE benchmark Sensex trimmed its initial losses but was quoted still lower by 41 points in the late morning trade due to selling in Banking and FMCG sectors despite buying in Capital Goods, Consumer Durable and IT sectors. 

The sensex opened lower at 29,143.63 and dropped further to 29,024.92 on weak Asian cues coupled with foreign capital outflows before quoting at 29,142.45 at 1100 hrs, still showing a loss of 40.50 points or 0.14 per cent from its last weekend’s level. 

The 50-share Nifty also moved down by 6.95 points or 0.08 per cent to 8,801.95 at 1100hrs.

Major losers were Dr. Reddy’s Lab (2.42%), Coal India (2.24%), HUL (1.97%), Bajaj Auto (1.92%), ICICI Bank (1.70%), Bharti Airtel (1.68%), HDFC Bank (1.25%) and ITC (1.25%). 

However, Sun Pharma at 2.45 per cent, Hindalco 2.11 per cent, Maruti 2.11 per cent, Wipro 1.73 per cent, Larsen 1.53 per cent, M&M 1.50 per cent and Cipla 1.26 per cent showed a rise.

Foreign portfolio investors sold shares worth a net Rs. 771.55 crore on last Friday as per provisional data. 

Asian equity markets were trading lower as data showing China’s manufacturing sector remaining in a poor state dampened investors’ spirit. Key indices in China, Hong Kong, Japan, South Korea, and Indonesia were off 0.11 per cent to 1.16 per cent while indices in Taiwan and Singapore were up 0.09 per cent to 0.54 per cent.