Business

Sensex up 464 points

MUMBAI: The benchmark Sensex on BSE on Friday gained over 460 points to reverse hammering of the past seven days on emergence of buying triggered by Prime Minister Manmohan Singh’s confident remarks that the economy would sustain eight per cent growth despite global economic turbulence.

The 30-share barometer on the Bombay Stock Exchange bounced back to close at 8915.21, a smart rise of 464.20 points, or 5.49 per cent, from its last close.

Nifty, the broader index on the National Stock Exchange, also recouped by 140.30 points, or 5.50 per cent, to 2693.45. The bellwether index has shed a massive 57 per cent since January after surging to over 21000-level in the same month. Foreign institutional investors have pulled out Rs. 53,477 crore this year so far. Besides the Mr. Manmohan Singh’s optimistic remarks, anticipation of another round of rate cuts by the central bank encouraged investors to buy. Marketmen said inflation declining for the second week in a row has further strengthened anticipation of rate cuts by the Reserve Bank.

Brokers attributed recovery in share values also to short coverings by operators.

Snapping a four-day losing streak, the rupee recovered but not enough to dip below the 50-mark against the greenback, after setting fresh record low in the past two straight days.

After plunging 50.49/50 in early trade at the active trade at the interbank foreign exchange market, the domestic currency moved in a range of 49.96 and 50.53.

It finally ended at 50.02/03 a dollar, up by 18 paise. — PTI

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