Rupee closes at all-time low

Rising global oil prices and continuing heightened tensions in the Middle East exerted renewed severe pressure on the rupee. A market driven by thin dollar supplies further aggravated the rupee’s woes, dealers said. There was dollar demand from a few foreign banks on behalf of foreign funds and fairly good buying from some state-owned banks, they added.

Bankers said if the market continues to face weak dollar supplies, the rupee could come under significant pressure later in the week when the month-end dollar demand emerges. Developments in the Middle East and its effect on global oil prices will mostly determine the market trends, dealers said.

Meanwhile, high oil prices held steady on Monday as Middle East tensions simmered and markets resting on wafer-thin surplus stocks readied for a surge in winter demand. International benchmark Brent crude for December delivery settled 47 cents higher at $32.08 a barrel, surging on renewed Middle East tensions.

US December light crude was 81 cents firmer at $33.76. World oil production — at full tilt everywhere outside Saudi Arabia — has little margin for error ahead of a northern hemisphere winter that will see the highest demand in history.

Sensex rises by 32 pts: Indian markets staged a partial recovery on Tuesday. The benchmark Sensex recovered by over 32 points following selective purchases by foreign institutional investors (FIIs) in select index-based shares that reversed the downtrend on the Bombay Stock Exchange (BSE).

Reflecting the listless activity, the BSE Sensex opened marginally lower at 3603.66 and declined further to a low of 3584.38 following a negative turnaround in the Nasdaq Composite Index last night. But fag end short covering by operators and selective purchases by foreign institutional investors (FIIs) in some index-based heavy-weighted counters like Infosys Tech, Satyam Computer, ITC, MTNL and RIL lifted the Sensex to the day’s high of 3656.31 before closing at 3651.99 as against Monday’s close of 3619.53, registering a small gain of 32.46 points.

Dealers said punters were squaring up their positions in view of the last day of the current settlement on the National Stock Exchange (NSE). Digital Equipment continued to be in good demand on institutional buying support due to excellent second quarter working results and closed up by eight per cent.

In the specified group, 61 shares recorded gains while 74 registered losses. HFCL shot up by 49.50 to 1114.75. Infosys Tech rose by 180.85 to 7087.70, Satyam Computer by 11.10 to 338.40, Bajaj Auto by 9.55 to 294.55, Castrol by 5.25 to 200.85, Grasim by 7.40 to 198.20, Hindalco by 20.55 to 720.80, ITC by 14.25 to 761.30, MTNL by 5.90 to 139.35, Nestle by 17.90 to 519.60, NIIT by 7.90 to 1642.10, RIL by 6 to 293.30, Sterlite by 15.45 to 155.35, Digital Eqip by 33.30 to 449.95 and Wipro by 80.10 to 2209.90.