Rupee posts biggest single-day rally, Sensex jumps as oil fallshttps://indianexpress.com/article/business/market/rupee-posts-biggest-single-day-rally-sensex-jumps-as-oil-falls-5191375/

Rupee posts biggest single-day rally, Sensex jumps as oil falls

Oil prices fall more than 2 per cent as Saudi Arabia and Russia said they were ready to ease supply curbs that have pushed crude prices to their highest since 2014.

Rupee posts biggest single-day rally, Sensex jumps as oil falls
The Bombay Stock Exchange building in Mumbai. (Express photo by Ganesh Shirsekar/Files)

The rupee and stock markets on Friday staged a strong comeback amid positive global cues and the decline in global crude oil prices. The domestic currency clocked its biggest single-session rally, surging by a whopping 56 paise to close at 67.78 against the US dollar.

The BSE Sensex surged over 261 points as recently battered energy and metal counters attracted retail buying interest and domestic institutional investors stepped up purchases.

Oil prices fell more than 2 per cent on Friday as Saudi Arabia and Russia said they were ready to ease supply curbs that have pushed crude prices to their highest since 2014. The energy ministers of the two major producers met in the Russian city of St. Petersburg to review the terms of the global oil supply pact that has been in place for 17 months, ahead of a key OPEC meeting in Vienna next month.

On the global front, investors were cautious after US President Donald Trump canceled a planned meeting with North Korean leader Kim Jong Un and threatened to impose tariffs on auto imports.

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The 30-share BSE Sensex opened on a strong footing at 34,753.47 and maintained its upward trend to hit the day’s high of 35,017.93. It finally ended at 34,924.87, up 261.76 points, or 0.76 per cent. The index had rallied 318.20 points in the previous session. The Nifty finished the day at 10,605.15, showing a hefty gain of 91.30 points, or 0.87 per cent, after shuttling between 10,628.05 and 10,524.

On a weekly basis, the Sensex scored a moderate gain of 76.57 points, or 0.22 per cent while the Nifty rose 8.75 points, or 0.08 per cent.

Meanwhile, Indian markets have witnessed a significant rise during the first four years of the Narendra Modi government. Since May 26, 2014, the day Modi was sworn in as the Prime Minister, the benchmark Sensex has risen by 10,207.99 points or 41.30 per cent, while the NSE Nifty spurted 3,246.10 points or 44.11 per cent. The Sensex hit a lifetime high of 36,443.98 on January 29, 2018.

“A less than hawkish US Fed minutes and positive global cues uplifted domestic sentiments. Short covering was broad-based across sectors, while some buying interest was seen in mid and small cap stocks. “Some respite was seen in INR and oil prices which helped the market to recoup its losses this week,” said Vinod Nair, Head of Research, Geojit Financial Services.

Domestic institutional investors (DIIs) net bought equities worth Rs 1,480.51 crore, while foreign portfolio investors (FPIs) sold shares to the tune of Rs 701.93 crore on Thursday, provisional data showed.

Oil companies IOC, ONGC, HPCL and BPCL recovered after a sharp decline yesterday. ONGC was the top performer in the Sensex pack, rising 4.59 per cent, with global crude oil benchmark Brent dipping to $ 77.03 a barrel. IT stocks extend gains for the second day, led by Infosys 0.57 per cent, Tata Elxsi 3.03 per cent and Wipro 0.28 per cent.

Tata Steel climbed 3.43 per cent after the NCLAT refused to entertain a second round of bidding for Bhushan Steel. Other gainers in the Sensex pack were Yes Bank 2.71 per cent, IndusInd Bank 2.29 per cent, Adani Ports 2.17 per cent, Axis Bank 1.88 per cent and Hero Motocorp 1.85 per cent.

In the Asian region, Japan’s Nikkei ended 0.06 per cent higher, while Hong Kong’s Hang Seng fell 0.56 per cent and Shanghai Composite shed 0.42 per cent. In the Eurozone, Frankfurt’s DAX rose 0.99 per cent and Paris CAC gained 0.52 per cent in early deals. London’s FTSE rose 0.14 per cent.

The rupee touched a high of 67.70 in the intra-day trade. It had closed at 68.34 a dollar on Thursday after bouncing back from an 18-month low. “Amidst a strength in local equities, the rupee continued to recoup the week’s losses, with solid gains today. Upcoming GDP data and expectations of good monsoon will seek to cool inflationary fears. Currency contracts’ expiry next week also meant that longs were wound down, adding to the pull back in the USD/INR futures,” said an analyst.

The forex market witnessed a sudden revival in sentiment towards the mid-session following a sharp pullback in global crude prices, threatening to upset India’s macroeconomic balance this fiscal and derail the worlds fastest-growing large economy. Global crude prices fell sharply by over 2 per cent, despite multiple production outage fears in major producing countries, either real or prospective, including Venezuela, Libya and Iran.

TCS mcap hits Rs 7 lakh crore intra-day

Mumbai: Tata Consultancy Services on Friday surged past Rs 7 lakh crore in intra-day trading, making it the first company to achieve this milestone. The market capitalisation of TCS jumped to Rs 703,309 crore during the intra-day session on the BSE.

The m-cap was calculated at the stock’s 52-week high price of Rs 3,674 hit Friday on the exchange. At the close of trade, the m-cap slipped below the Rs 7-lakh crore mark and stood at Rs 6,87,123.96 crore. TCS shares slipped 0.43 per cent to settle at Rs 3,589.45 apiece on the BSE.

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TCS had last month become the first Indian firm to close the trading session with over $100 billion market valuation. TCS is India’s most valued firm, followed by Reliance Industries with m-cap of Rs 583,972 crore, HDFC Bank (Rs 522,420 crore), HUL (Rs 341,064 crore) and ITC (Rs 331,895 crore). —ENS