Sensex up 61 points as IT stocks gain on weak rupee

Sensex up 61 points as IT stocks gain on weak rupee

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Sensex up 61 points as IT stocks gain on weak rupee. MUMBAI: Erasing early losses, the BSE benchmark Sensex on Tuesday ended with a gain of over 61 points at 19,804.03 on the back of rise in IT stocks as the rupee showed signs of weakness against the US dollar in the run up to the two-day Federal Open Market Committee (FOMC) meeting.

Sensex up 61 points as IT stocks gain on weak rupee

The Sensex, which had added 10 points in the previous session, witnessed a volatile session. After opening slightly lower, it fell to 19635.44 but recouped losses to end at 19,804.03, up 61.57 points, or 0.31 per cent.

TCS, Infosys and Wipro notched up good gains as buying increased in step with the rupee depreciating to 63-levels. A weak local currency boosts IT firms’ dollar-denominated sales.

Shares of Dr Reddy’s jumped nearly 4 per cent after USFDA approved its Azacitidine injection. Ranbaxy, which had tanked over 30 per cent after FDA’s import alert on Mohali unit yesterday, rose on value-buying today, traders said.

HUL, Tata Motors, Jindal Steel, Sesa Goa, Maruti, ITC, Hindalco, CIL, BHEL and Bajaj Auto were among Sensex gainers.

On the other hand, interest-sensitive realty, banking, power and consumer durable shares mostly ended lower, amid traders adopting a cautious stance ahead of the RBI monetary policy meeting later this week.

The broad-based National Stock Exchange index Nifty rose by 9.65 points, or 0.17 per cent to 5,850.20, after shuttling between 5,857.80 and 5,804.90.

Also, SX40 index, the flagship index of MCX-SX, ended at 11,722.64, up 7.19 points or 0.06 per cent.

Sectorally, the BSE IT sector index gained the most by rising 2.05 per cent, followed by BSE Teck index that gained 1.58 per cent. Metal index rose by 0.97 per cent to 8,451.30 and FMCG index by 0.77 per cent.

Global markets were edgy with US stock-index futures little changed as US Federal Reserve policy makers prepared to begin a two-day policy meeting where they are widely expected to reduce its USD 85 billion of monthly bond purchases.

Source : timesofindia.indiatimes.com

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