Sensex up another 122 points on tech sector push

The broad-based BSE-100 index advanced further by 57.78 points to 2101.58 from 2043.80 while the 50-share National stock Exchange Nifty ended 2.76 per cent or 36.25 points higher at 1,347.30 (provisional).

Brokers said recently-battered, IT, Telecom and media sector stocks staged a significant recovery to hit upper end of circuit-filter following resumption of buying by FIIs and domestic players. Other selective traditional economy stocks maintined up trend on sustained buying by domestic Financial institutions.

On Monday, old economy and consumer goods stocks were thestars. While many of them gained on Tuesday, cement stocks saw profit-booking after good gains on normal monsoon forecasts.

Tech stocks which normally follow the Nasdaq market were ontheir own on Tuesday as the US-tech exchange was closed for the Memorial Day holiday on Monday. But any gyrations there on Tuesday could affect sentiment all over again, analysts said.

Some dealers said the weakening rupee was a good sign for software firms, most of whom earn a large chunk of their revenues from exports.

FII’s reported to have picked up shares of Infosys Tech, Satyam Computers, Silverline, NIIT, SSI, Wipro, Global Tele, Himachal Futuristic, Zee Telefilms and few others from cash section.

Despite today being the last session on the NSE, the positive sentiments was also helped by short covering. Barring a few old-economy shares, which declined on profit-selling, other counters continued to rule firm on local institutions support. Of this, Himachal Future grabbed the prestigious slot of highest traded security with a turnover of Rs 524.07 in the total business volume of Rs 3022.36 on the BSE. The bellwether Himachal Futur spurted by Rs 73.35 to Rs 925.25.

Several IT stocks gained between eight and twelve per cent including Satyam Computer Services ended 9.11 per cent higher at Rs 2,269.50, Infosys Technologies 6.7 per cent up at Rs 6,270, SSI 11.33 per cent at Rs 1,995 and CMC 7.99 per cent at 263.50.A few old economy and pharma stocks were also gainers. Reliance ended up Rs 5.75 up at Rs 343.65, ITC Rs 69 at Rs 741, and Mahindra & Mahindra Rs 13.75 to Rs 227.75.

SBI steps in to salvage rupee

BOMBAY: The Indian currency continued its downward march as it closed at a new low of 44.565/575 per dollar, on Tuesday amid sustained dollar demand from importers during the day. Its fall was, however, checked by the State Bank of India’s (SBI) dollar supplies.

The rupee opened Tuesday at 44.49/51 before sliding on heavy dollar buying by importers, including a state-run oil firm’s $ 40-50 million requirement, dealers said.

"The SBI was there protecting the 44.58 level…except for a brief minute when the SBI was off the market, dollar demand was taken care of," a dealer with a foreign bank said.

Dealers said the SBI’s continuous presence indicated the central bank probably did not want the rupee to weaken beyond current levels. "Now the exporters who are holding back sales will slowly emerge," a dealer with a state-run bank said.