Sensex records 93 points gain

Infosys Technologies, being the major contributor to the Sensex kitty, remained in the limelight attracting continuous buying from FIIs which were reportedly net buyers in software shares like Silverline, SSI Ltd, Pentamedia, Global Tele, Aptech Ltd, NIIT and others. Increased FII activity with their net purchases to the tune of Rs 662 crore in a period of five sessions from August 4 to 10 had been the main factor for the market to stand the onslaught from speculators which generally remained cautious in view of tension on the Indo-Pak border last week.

Dealers said Silverline was in keen demand as its price level is about 50 per cent lower compared to the ADR price in International markets. In the specified group, 109 shares including heavyweights like Infosys Tech, Satyam Computer, HLL, ITC, MTNL, RIL, SBI, TELCO and TISCO registered sharp to smart gains while only 29 recorded moderate losses.

Himachal Futuristic firmed up by 82.05 to 1541.40. Infosys Tech was up by 451.10 at 7749.25, Satyam Computer by 19.25 at 503.10, Global Tele by 77 to 1039.90, Dr Reddy by 34.60 at 1140.05, HLL by 7.50 at 243.80, ITC by 3.75 at 818.00, Mah & Mah by 6.65 at 181.85, MTNL by 3.55 at 157.40, NIIT by 75.10 at 1717.45, RIL by 7.35 at 337.50, SBI by a rupee at 201.55, TELCO by 1.95 at 89.50 and TISCO by 2.30 at 107.75.

Rupee stabilises

MUMBAI: THE rupee held in a narrow range on Wednesday as central bank measures to improve dollar supplies finally brought the currency welcome relief and analysts said they expected some stability in the short term.

The rupee traded in a 45.65-45.70 per dollar range, around 0.9 per cent stronger than its record low of 46.08 hit last Friday. Traders attributed the currency’s strength to a fresh set of measures announced this week by the central bank, after intervention, short-term interest rate hikes and tightening of domestic money market liquidity failed to stem the rupee’s slide.

On Monday the Reserve Bank of India (RBI) halved foreign currency limits for exporters and asked them to keep their foreign currency holdings in low interest-bearing accounts. The central bank also said amounts in excess of the reduced limits in the special accounts, known as EEFC (Exchange Earners’ Foreign Currency) accounts would have to be converted into Rupees by August 23. It estimated the total balance in EEFC accounts at $2.0 billion.

While the latest set of measures improved sentiment towards the rupee and held out hopes of improved supply in the near term, analysts warned that long term concerns remained.

"Currently the market is seen stabilising awaiting the exporter dollar supplies but after the August 23 deadline the demand-supply situation will be the same as it was pre-Monday unless there are large inward dollar flows," chief dealer at ABN Amro Bank V Ravikumar said.

The rupee, convertible only on the current account, has fallen some 4.8 per cent against the dollar this year although it has gained against other major currencies.