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Sensex up 385 points,Rupee at 7-week high

The rupee opened at 62.15 a dollar from the previous close of 62.46 at the forex market.

Written by ENS Economic Bureau | Mumbai | Published: October 4, 2013 3:54:24 am

Stock indices jumped nearly 2 per cent and the rupee gained 73 paise to 61.73 on Thursday even as the US currency weakened globally following the budget impasse in Washington and fears of the Fed tapering its stimulus programme receded.

Tech companies,led by TCS,gained ground amid an improving business outlook in key markets,while banks surged on potential gains from falling bond yields. The market also tracked gains in other regional markets and an upbeat survey on China’s huge services sector. The 30-share Sensex opened higher at 19,585.79 and advanced to the day’s high of 19,929.24 before ending at 19,902.07,a gain of 384.92 points or 1.97 per cent. The 50-share Nifty on the NSE rose 129.65 points,or 2.24 per cent,to finish at 5,909.70. The SX40 index on the MCX Stock Exchange closed at 11,853.27,up 2.01 per cent.

The rupee opened at 62.15 a dollar from the previous close of 62.46 at the forex market and touched a low of 62.22. It bounced back to a high of 61.65 before settling at 61.73,a rise of 73 paise or 1.17 per cent. “The gains were mainly attributed to the sharp weakness in the US dollar index and strength in the euro,” said Abhishek Goenka,CEO of India Forex Advisors. “The US dollar weakened globally following a failure by US lawmakers to resolve a budget impasse.”

Amar Ambani,Head of Research at IIFL,said,“With currency stabilising and RBI committing adequate liquidity in the system,expectations are rising around further reduction in the MSF rate in near term. Easing of the rates at the short-end bodes well for significantly wholesale funded banks. PSU Banks were in the limelight as the government is likely to soon announce a plan to re-capitalise them.”

Most Asian and emerging market stocks rallied for the second straight session on the back of robust economic data from China.

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