MUMBAI: Bolstered by sharp rise in FMCG giants, HUL and ITC on the back of abundant rainfall this year, the benchmark S&P BSE Sensex on Wedneday recovered almost half of its overnight losses, with a rise of over 97 points to end at 19,948.73.
Overnight recovery on the back of the apex bank’s measures to curb the rupee volatility proved to be short lived as the Indian rupee fell back from its two-week intra-day high of 59.05 to close at 59.34, down by a mere three paise, against the Greenback.
The rupee moved in a wide range of 52 paise on alternate bouts of demand and supply with the confusion over the sustainability of the stability of the rupee after the Reserve Bank of India (RBI) on Monday after market hours announced slew of measures to address exchange rate volatility.
Fresh late dollar demand from importers, better dollar overseas and capital outflows also weighed on the rupee, a forex dealer said.
However, mixed to weak global trends ahead of the US
Federal Reserve Chairman Ben Bernanke’s semiannual testimony and earnings from heavyweights such as Bank of America Corp. and Intel Corp. later in the day, weighed on the market.
The Bombay Stock Exchange 30-share barometer resumed up following overnight government’s decision to relax FDI rules for a number of sectors and touched a high of 19,983.22 before falling back to a low of 19,778.54 on the back of reversal of initial firm trend in European market.
It, later, recovered on buying in blue-chip counters to end at 19,948.73, showing a rise of 97.50 points or 0.49 per cent.
Press Trust of India