Optimism surrounding blue-chip stocks was tempered by the fact that industrial production and retail inflation data are due later this week.
Sensex posts weakest closing since Nov 15; Nifty falls below the 10,200-mark
The NSE Nifty dropped 41.65 points or 0.40 per cent to 10,348.05.
Stock markets continued to show strength that bolstered rupee sentiment, currency traders said. However, the dollar’s clout overseas weighed heavy on the domestic unit.
Hong Kong’s Hang Seng was up 1.05 per cent while Shanghai Composite rose 0.71 per cent. Japan’s Nikkei too went up 0.78 per cent. The Dow Jones Industrial Average in the US ended 0.69 per cent higher on Tuesday.
On Tuesday, rupee had gained 22 paise to end at a two-week high of 64.89 against dollar, cashing in on positive sentiment after Moody’s upgrade of India’s credit rating. BSE Sensex rallied 111.64 points, or 0.33 per cent, to 33,589.99 in early trade.
The Sensex hit the day’s high of 33,165.15 before settling up 346.38 points, or 1.06 per cent, at 33,106.82. This is the highest closing since November 10 when it had closed at 33,314.56.
The 30-share index was trading lower by 113 points, or 0.34 per cent, at 32,828.87. The NSE Nifty fell 30.85 points, or 0.30 per cent, to 10,155.75 in early trade.
The rupee was trading higher by 13 paise to 65.29 against the American currency at the forex market on Tuesday.
Investors also focussed on oil prices and the West Asian crisis and reacted to the September quarterly earnings of heavyweights such as Idea Cellular, L&T and Coal India.
Expectations that the GST (goods and serivces tax) Council might give some relief to some sectors by slashing the indirect tax rates at its meeting which begins today also supported the rebound, brokers said.
The 50-share NSE Nifty added 37.90 points, or 0.36 per cent, at its life high of 10,461.70.
On Wednesday, rupee had surged a solid 16 paise to end at an over one-month high of 64.59 against US currency following heavy dollar unwinding. The benchmark Sensex was trading higher by 45.53 points, or 0.13 per cent, at 33,645.80 in early session.
NSE Nifty breached the 10,450-level intra-day for the first time. It closed at 10,440.50, a fresh life high, up 105.20 points, or 1.02 per cent.
A World Bank report which said India jumped 30 spots to the 100th position in the ranking of countries in terms of Ease of Doing Business raised hopes of continued foreign direct investment inflows into the country.