Reclaims 26K mark: Sensex jumps 456 points on gains by IT & pharma

Rupee closed up 0.4%, biggest gain since September 22

By: ENS Economic Bureau | Mumbai | Published:November 26, 2016 12:44 am
sensex, sensex today, nifty, sensex nifty, sensex open, stocks open, sensex update, sensex closing, rupee, rupee value, rupee india, dollar, rupee vs dollar, sensex news, rupee news, india news, indian express, Both the Sensex and Nifty ended the week higher by 166.10 points (0.63 per cent) and 40.20 points (0.49 per cent), respectively. (File Photo)

After Thursday’s plunge, both the rupee and stock markets staged a comeback on Friday. The Sensex surged by 456 points to reclaim the 26,000-mark on the first day of December derivative series, led by gains in export-oriented IT and pharma companies. The Sensex opened higher at 25,953.24 and hovered in a range of 25,874.45 and 26,343.95 before ending at 26,316.34, showing a gain of 456.17 points or 1.76 per cent. This was the benchmark’s biggest single day gain since October 18, when it had surged 520.91 points. The NSE 50-share Nifty rose by 148.80 points or 1.87 per cent to close above 8,100-level at 8,114.30.

The rupee closed at 68.46/47 a dollar, up 27 paise, or 0.4 per cent — its biggest gain since September 22 — from its previous close of 68.57. The currency opened at 68.73 against the US dollar and touched a high of 68.36. It has fallen 3.4 per cent so far this year.

Vinod Nair, head of Research, Geojit BNP Paribas Financial Services, said, “markets rebounded from the oversold region post the 7 per cent fall due to the demonetisation. Now the market will focus on the possibility of a 50 bps cut in repo rate by the RBI in the next monetary policy.”

“With fresh positions being initiated in December futures and option series, and with rupee strengthening sharply, markets found its voice, and registered gains across sectors. Gains were initially seen in IT and metal sectors, but mid caps also got the wind soon, suggesting that risk appetite had improved after a fortnight long selling spree had rendered prices ripe for value picking,” said an analyst. In the IT pack, TCS rose 5.23 per cent, followed by Infosys (4.78 per cent) and Wipro (3.09 per cent), while pharma sector gainers were Sun Pharma (4.18 per cent), Aurobindo Pharma (4.07 per cent), Lupin (3.36 per cent) and Cipla (1.75 per cent).

Both the Sensex and Nifty ended the week higher by 166.10 points (0.63 per cent) and 40.20 points (0.49 per cent), respectively. This is the first weekly gain in the indices after five weeks.

Jayant Manglik, president, Religare Securities, said, “despite lacklustre move on the global front, strong recovery in IT majors and select pharma counters set positive tone from the beginning, which was later supported by rotational buying in other sectors. However, the underperformance from the banking and auto space kept a check on the bullish sentiment. The index rose gradually as the session progressed.”

“It’s too early to call it as reversal of trend and we suggest investors should wait for further confirmation, especially from the banking pack,” he said.