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An evening walk down Dalal Street | Sensex ends over 200 points higher, Nifty above 11,500 amid weak rupee moves

September 06
18:06 2018

Sentiment on the market moved in tandem with the rupee’s movement on Thursday. A recovery in the Indian rupee, after it fell to a record low of 72.10/USD, helped the market end the day in green as well. The Nifty reclaimed 11,500-mark and ended above the threshold.

Along with the currency, rally in index heavyweights such as Reliance Industries and HDFC twins helped indices see a strong surge as well. Among sectors, banks lost some sheen in the last half hour, but strength in pharmaceuticals, energy, and infrastructure names helped the bulls to hold their grip on the market.

Having said that, investors will make a note of rupee’s movements ahead, with the currency hitting 72 per dollar again at the time of market coming to close.

Though the market had a good start, it soon gave up gains to trade around flat line through the day. But a further weakness in the rupee, which fell to a historic low of 72.10 per US dollar, breaching the psychological 72-mark dented sentiment. As an immediate reaction, the market saw a fall, before it staged a recovery. The currency, too, had by then, recovered over 20 paise.

“Fundamentally, rupee should continue to depreciate against the US dollar in the longer run given the interest rate and inflation differential in the two countries. However, the sudden volatility seen in the rupee performance can be attributed to external factors such as global trade tensions, strengthening dollar, and overall weakness in emerging market currencies,” Pushkar Mukewar, Co-Founder and Co-CEO, Drip Capital, said in a statement.

At the close of market hours, the Sensex ended higher by 224.50 points or 0.59% at 38242.81, while the Nifty closed higher by 59.90 points or 0.52% at 11536.90. The market breadth is positive as 1,582 shares advanced, against a decline of 1,105 shares, while 191 shares were unchanged. The rupee at this point was trading at 72/USD.

Reliance Industries, Sun Pharmaceuticals, and Cipla were the top gainers, while Maruti Suzuki, Yes Bank, Zee Entertainment and Hindalco lost the most.

Stocks in News

Shares of Persistent Systems gained for second consecutive day and rose 5 percent as investors continued to bet on its acquisition of Herald Health.

Shares of HUDCO soared over 7 percent after the company’s Q1 profit jumped 105% to Rs 333.4 crore; revenue rose 70% to Rs 1,530.9 crore.

Dilip Buildcon gained 2 percent as the firm received a letter of acceptance (LoA) from Northern Coalfield (NCL) worth Rs 717.45 crore (excluding GST).

Meanwhile, Adani Enterprises soared 9 percent even after the stock went ex-gas business.

Reliance Home Finance, the part of Anil Dhirubhai Ambani Group, is planning to raise Rs 1,500-2,000 crore through preferential issue, reports CNBC-TV18 quoting sources. The stock rallied 9 percent.

Reliance Industries ended 3 percent higher after CLSA maintained its buy call on the stock and raised target to Rs 1,500.

Global update

Markets in Asia were lower as investors continued to be worried about fears in emergin markets along with weak handover from the Wall Street. The Nikkei 225 fell 0.41 percent to close at 22,487.94.

Meanwhile, markets in Europe were positive in the morning trade. Stoxx 600 is up by 0.15 percent.

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