The rupee closed above the 68-level against a U.S. dollar. The US Fed’s FOMC (Federal Open Market Committee) meet is scheduled for January 27-28.
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The benchmark BSE Sensex rose 0.18 percent.
“Short-covering and value buying on account of hopes of an interest rate cut by RBI and strengthening rupee supported markets’ gains”, Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS. The rupee was trading lower by 15 paise at 67.98 against the American currency in early trade today at the Interbank Foreign Exchange market as the dollar firmed up overseas.
Foreign investors have withdrawn over $7 billion of funds so far from Asian equities in 2016 till last Friday, according to HSBC Research, while Indian markets have witnessed foreign outflows of $1.75 billion in January so far. The gauge had surged almost 160 points to touch the day’s high of 24,645.70 and a low of 24,458.13, intra-day. “However, depreciation in the rupee capped the gains”, said Gaurav Jain, Director, Hem Securities. Markets were closed yesterday for the Republic Day. Investors, however, await the bank’s assessment of USA growth outlook and indications about the possibility and timing of further rate hikes amid recent turmoil in global markets.
“The street (Dalal Street) is also not factoring in any rate cut in the RBI policy next week. All major sectorial indices, barring the bank index are trading in the green with handsome gains”.
Some buying activity is seen in metal, oil and gas, consumer durables, utilities, power, IT, pharma and teck sectors, while telecom sector is showing weakness on BSE.
The S&P BSE FMCG index augmented by 108.63 points, healthcare index gained by 102.44 points and oil and gas index swelled by 79.66 points. But China shares struggled as the Shanghai Composite index tumbled 2.82 per cent. United States stocks ended sharply higher yesterday after energy stocks soared amid a rebound in oil prices.
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However, BHEL, Asian Paints, Hindustan Unilever, Hero MotoCorp, Adani Ports, Axis Bank and Bajaj Auto succumbed to profit-booking towards the fag end.
