Date:23/08/2008 URL: http://www.thehindu.com/2008/08/23/stories/2008082355991600.htm

Business

Sensex recovers 158 points

MUMBAI: After losing over 100 points in early trade, the Bombay Stock Exchange sensitive index (Sensex) notched up a gain of nearly 158 points on buying support in metal, banking, consumer durable, FMCG and refinery stocks amid weak Asian trends and higher inflation at home.

The sensex closed higher at 14401.49 on Friday against 14243.73 on Thursday. The National Stock Exchange index Nifty rose by 63.60 points to 4327.45. It touched a high of 4337 and a low of 4248

Marketmen said buying at low levels by operators and retail investors partly aided the firm trend. Investors ignored weak Asian cues and a rise in inflation as positive European opening helped the sentiment.

Analysts said short-covering, ahead of the expiry of derivatives contract on August 28 was the main reason for the recovery rather than making fresh purchases by operators. Sterlite Industries improved by 4.34 per cent to become the biggest gainer among the Sensex stocks.

Rupee gains

The rupee strengthened against the dollar for the second day on Friday, helped by inflows from abroad and gains in the stock market.

But dollar demand from oil firms and other importers trimmed the gains.

The rupee closed at 43.42/43 a dollar after touching a high of 43.30 against 43.52 a dollar on Thursday.