Business

Sensex recovers 127 points

MUMBAI: The stock markets showed signs of stability a day after the huge budget-day fall, with the Bombay Stock Exchange benchmark Sensex closing 127 points up amid high volatility and buoyant European cues.

The market showed greater resilience after Finance Minister Pranab Mukherjee said the government had taken the calculated risk of high fiscal deficit to help stimulate growth and that it was committed to divesting its equity in public sector enterprises.

The BSE 30-share barometer fluctuated widely between 14000.68 and 14251.88 before settling at 14170.45, a net recovery of 127.05 points over its previous close.

Analysts said the market was expected to stay range-bound between 14000 and 15500 ahead of first-quarter corporate earnings, to be announced shortly.

Investors who had built up positions on expectations of a clear indication on economic reforms preferred to book profits during the day while institutional investors made good purchases at lower levels.

Public sector undertaking and oil and gas stocks remained under pressure in the absence of the government’s silence on the disinvestment programme in the Union Budget. The broader 50-share Nifty of the National Stock Exchange gained 36.45 points to close at 4202.15 from its last close.

Reliance Industries was down 2.02 per cent because of a hike in Minimum Alternate Tax (MAT) to 15 per cent in the budget. Auto and FMCG shares were in the forefront with their respective indices rising by 3.92 per cent and 3.83 per cent respectively.

ITC gained 6.77 per cent, Jaiprakash Associates 6.65 per cent, Hero Honda 5.80 per cent, M & M 5.64 per cent, ACC 5.34 per cent, Grasim 5.19 per cent, Maruti Suzuki 4.34 per cent, Bharti Airtel 3.48 per cent and L&T 2.52 per cent.

The market breadth remained negative with 1,461 losers against 1,071 gainers on the BSE.

The rupee pared early gains and closed 10 paise stronger at 48.44/45 against the dollar on Tuesday, moving in tandem with domestic stocks as the U.S. currency improved against major world counterparts. The dollar was marginally higher against the euro in early trade on the London exchange amid fresh worries that the global economy might take more time for recovery than anticipated.

The interbank foreign exchange market witnessed active trading during the day as the domestic currency moved in a range of 48.28 and 48.75 after resuming firm at 48.40/42 from its last close of 48.54/56. — PTI

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