Sensex up 125 pts,Rupee rallies 46 paise in early trade
Mumbai: The benchmark BSE Sensex recovered over 125 points in early trade today on emergence of buying by funds and retail investors amidst a firming trend in global markets after Federal Reserve’s upbeat outlook on the US economy.
The 30-share index rose by 125.27 points, or 0.50 per cent, to 25,371.521 points with capital goods, power, consumer durables, realty and auto sector stocks leading the recovery.
The index had tanked 274.94 points in yesterday’s trade after unrest intensified in Iraq, threatening rise in crude import costs.
On the similar lines, the National Stock Exchange index Nifty surged by 37.95 points, or 0.50 per cent, to 7,596.15.
Brokers said fresh buying by funds and retail investors, triggered by a better trend on other Asian bourses following overnight gains in the US markets fuelled by upbeat comments on the economy by the Federal Reserve.
The Fed said the economic growth has rebounded in recent months and kept its short-term interest rates unchanged.
However, it cut its monthly bond-purchase programme to USD 35 billion from USD 45 billion.
Among other Asian markets, Hong Kong’s Hang Seng rose by 0.36 per cent, while Japan’s Nikkei was up by 1.62 per cent in early trade today.
The US Dow Jones Industrial Average gained 0.58 per cent higher in the previous session.
Rupee rallies 46 paise against dollar in early trade
The rupee regained strength to trade 46 paise higher at 59.93 against the dollar at the Interbank Foreign Exchange market today on increased selling of the US currency by exporters and banks.
Forex dealers said a higher opening in the domestic equity market and dollar’s weakness against other currencies overseas after the US Federal Reserve kept its easing policy unchanged also supported the rupee.
The Fed on Wednesday said it would leave its benchmark interest rate unchanged but cut its monthly stimulus programme to USD 35 billion from USD 45 billion.
The rupee lost 36 paise to end at an over seven-week low of 60.39 against the dollar yesterday as growing unrest in Iraq pushed up crude and caution prevailed in the currency markets ahead of the outcome of US Fed meeting.
Meanwhile, the benchmark BSE Sensex recovered by 125.27 points, or 0.50 per cent, to 25,371.52 in early trade today.