Sensex surges 333 points on value buying as Rupee rebounds

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Sensex1Mumbai, 4 Sept (PTI): The Sensex soared nearly 333 points on value buying in blue chips like ICICI Bank, TCS and RIL in step with the recovery of the rupee.
After a steep fall of nearly four percent in the previous session, the Sensex spurted by 332.89 points, or 1.83 percent to 18,567.55 on funds buying, as investors judged 3 September’s sharp fall as excessive.
“Slight recovery of rupee along with appointment of new RBI Governor Raghuram Rajan, boosted the market sentiment. RBI was seeking taking fresh measures to curb currency weakening. Value buying after 3 September’s panic selling also helped the market to recover,” said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio Limited.The rupee, which fell to intra-day lows of 68.6, was trading at 67.1 levels against the dollar on suspected RBI intervention. On similar lines, the broad-based National Stock Exchange index Nifty jumped up by 106.65 points, or two percent to 5,448.10 backed by stocks of metal, pharma and auto sectors. Also, SX40 index, the flagship index of MCX-SX, ended at 10,966.82, up 124.41 or 1.15 percent.In order to encourage capital flows, the RBI today eased the external commercial borrowing norms by allowing companies to use funds raised from foreign partners for general corporate purposes.

Among Sensex constituents, Reliance Industries shot up by 2.32 percent to Rs 849.35 after dropping the most in more than four years on 3 September. Infosys rose by 2.37 percent to a record high of Rs 3,105.90. Bucking the firming tend, stocks of real estate firms fell after the RBI asked banks to link the disbursal of home loans to their stages of construction. Sectorally, the BSE metal sector index gained the most by rising 2.75 percent to 8,023.59, followed by healthcare index by 2.60 percent to 9,070.30. Auto sector index rose by 2.47 percent to 10,330.56 and IT index by 2.15 percent to 8,095.94.

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