Rupee, stocks ignore S&P move

MUMBAI, Oct 23: Contrary to expectations, the rupee and stock markets ignored the downgrading of India’s sovereign rating by Standard & Poor’s of the US. While the rupee closed steady against the dollar, Sensex of the Bombay Stock Exchange gained nearly 20 points at 2,784.46 on Friday.

“It was nothing sensational… it was expected,” said a senior broker. The new rating did not have any impact on the market as players had to square up their short positions ahead of the settlement. FIIs also purchased heavily in several shares and ignored the S&P downgrading news.

The rupee initially showed signs of weakness against the dollar but stabilised later following fresh inflow of dollars. Opening weak at 42.31/32 against the dollar, the rupee was traded at 42.33/34 levels just before the mid-session. Some deals were struck at 42.42 levels. The rupee recovered later and closed at 42.28/29, the same level as in the previous day.