Markets witnessed a rally on Friday with the BSE Sensex surging by 520 points,its biggest gain in 22 months.
In tune with the surge in stocks,the rupee rose by a staggering 80 paise,its biggest single-day gain in last nine months,to close above the 60-mark to the dollar at 59.39 amid signs of strong fund inflows on hopes that US Federal Reserve will not begin tapering monetary stimulus soon.
The biggest gains were seen in energy stocks after the government on Thursday approved a hike in gas prices.
Stocks of gas explorers Reliance Industries (RIL) and ONGC led the surge. ONGC rose by 2.98 per cent to Rs 330.10 while RIL closed at Rs 861.85,up 3.78 per cent on the BSE.
All 13 sectoral indices closing with gains as foreign insitutional investors (FIIs) were seen buying after a flurry of reforms in the energy space.
The BSE 30-share barometer resumed upward and stayed in the positive zone all through to end at a three-week high of 19,395.81,a spurt of 519.86 points or 2.75 per cent. Earlier,it had gained 567.50 points on August 29,2011.
FIIs turned net positive investors after 12 trading sessions with a net investment of Rs 1,124 crore on Friday,provisional data with the BSE showed.
The NSE 50-issue Nifty shot up by 159.85 points,or 2.81 per cent,to end at two-week high of 5,842.20. The SX40 index,the flagship index of MCX-SX,ended 275.16 points,or 2.45 per cent higher to close at 11,494.35.
Todays move was on the back of the government reforms initiative of increasing gas prices and setting up of a coal regulator, said Dipen Shah,head of private client group research,Kotak Securities. Asian markets cheered reports with up to 2.2 per cent rise as reports said Fed officials were of the view that asset purchases would be more aggressive if US growth signals prove to be weaker-than-expected.
The rupee commenced at 59.95 a dollar as against previous close of 60.19 at the Interbank Foreign Exchange (Forex) market and immediately touched a low of 60.02.
Later,it rebounded sharply and rallied to a high of 59.21 before settling at 59.39,revealing a rise of 80 paise,or 1.33 per cent. This is the rupees biggest single-day gain since September 21,2012,when it had gained 93 paise,or 1.71 per cent.
Markets expectation of improved scenario on CAD front on the back of falling gold prices and lesser buying of the yellow metal supported the currency, said Hemal Doshi,currency strategist at Geojit Comtrade,adding that the rupee may pull back more from the current level if RBI and government come up with more measures.
Gold hits 23-month low on weak cues
New Delhi: Gold prices on Friday tumbled to a 23-month low by losing Rs 1,150 to Rs 25,650 per 10 grams in the Capital on heavy selling by stockists and investors,triggered by a steep fall in overseas markets.
All round selling by stockists on free-fall in overseas markets and investors shifting their funds to surging equities mainly pulled down the gold prices to a level last seen on August 9,2011.
Silver also dropped by Rs 1,490 to trade below Rs 40,000 at Rs 39,010 per kg on poor offtake by jewellers and coin makers. PTI