Date:27/11/2008 URL: http://www.thehindu.com/2008/11/27/stories/2008112753581500.htm

Business

Sensex regains 9000-level

MUMBAI: The Bombay Stock Exchange benchmark Sensex on Wednesday regained the 9000-level after nine days on hectic buying across counters by funds.

The bellwether index climbed 331.19 points, or 3.81 per cent, to 9026.72 in highly volatile trading after a promising start, reversing two days of declining trend in which it had lost 220 points.

The Sensex had slipped below the 9000-level on November 17 after a series of relentless selling by foreign institutional investors (FIIs) on fears of global economic turmoil getting prolonged after more countries in Europe and Japan joined the list of nations in economic recession.

With buying spreading across counters, all sectoral indices closed with gains. However, banking shares were the clear winners with ICICI Bank (up 9.55 per cent) and HDFC Bank (up 8.63 per cent) coming out as top winners of the day.

Sterlite Industries which gained a handsome 12.88 per cent topped the list of gainers, pulling the metal index up by 3.66 per cent. Market leader RIL, which lost a hefty 6.40 per cent, recovered most of it on Wednesday by surging 6.11 per cent.

Marketmen credited the surge to market players’ covering their long pending positions ahead of Thursday’s settlement in the derivatives segment. They said hectic buying was witnessed in the last one-hour trading.

The broader 50-share Nifty of the National Stock Exchange shot up by 98.25 points or 3.70 per cent to close at 2752.25.

Rupee extends gains

The rupee extended the gains for the second day on Wednesday against the greenback by turning dearer by 45 paise at 49.50/51, with dollar supply sharply increasing amid a surge in local stocks. It closed at 49.95/96 on Tuesday.

Speculation that global financial giant Citibank, which has got a U.S. Fed rescue package, was selling dollars heavily weighed in favour of the domestic unit.

The rupee sentiment was so strong that it even hit a high of 49.30 a dollar in late afternoon trading. The rupee resumed stronger at 49.77/78 from its previous close of 49.95/96. It moved between 49.30 and 50.02, a sharp difference of over 70 paise, reflecting volatility in trade.— PTI