1. Sensex surges 456 points to reclaim 26,000-level, here’s why

Sensex surges 456 points to reclaim 26,000-level, here’s why

The BSE benchmark Sensex reclaimed the psychological 26,000-level by rallying over 293 points ion sustained bouts of buying in key frontline shares led by IT, tech, utilities, metal sectors amid higher Asian cues.

By: | Updated: November 25, 2016 4:23 PM
IT stocks hogged the limelight with BSE IT index rising over 4%, led by gains in Infosys, TCS and Wipro after the rupee touched its record low on Thursday against the dollar. IT stocks hogged the limelight with BSE IT index rising over 4%, led by gains in Infosys, TCS and Wipro after the rupee touched its record low on Thursday against the dollar.

Market benchmark Sensex surged over 456 points — its biggest single-day gain in over one month –to reclaim the 26,000-mark after investors created fresh long positions in the new December series amid the rupee rebounding from record lows. The Sensex opened strong at 25,953.24 and stayed in the positive zone through the session as buying activity gathered momentum. It touched the day’s high of 26,343.95 before closing at 26,316.34, a gain of 456.17 points, or 1.76 per cent — its biggest single-day rise since October 18 when it had gained 520.91 points. The 50-share NSE Nifty ended the day at 8,114.30, up 148.80 points, or 1.87 per cent after shuttling between 8,122.25 and 7,976.75.

1) IT stocks gain: IT stocks hogged the limelight with BSE IT index rising over 4%, led by gains in Infosys, TCS and Wipro after the rupee touched its record low on Thursday against the dollar. Export-driven businesses such as information technology and pharmaceutical earn more revenues on rupee depreciation as every dollar earned through exports means more rupees added to their bottom line. Shares of metal companies were trading higher for the fourth straight trading session with Hindalco Industries, Hindustan Zinc and National Aluminium Company (Nalco) hitting their respective 52-week high on the BSE in intra-day trade.

2) Rupee recovers from all-time lows: Snapping its five-session long losing streak, the rupee recovered to as low as 68.36 in the late morning deals after the Reserve Bank of India intervened heavily in the morning trade to arrest the currency’s fall.

3) Global markets: In overseas markets, Asian markets gained as the Thanksgiving break in the United States pegged the dollar’s relentless surge that had sucked capital out of most emerging markets. MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.05% on Friday. Wall Street was closed on Thursday for the Thanksgiving holiday and trading will end early on Friday. European markets ended on a positive note, with the Stoxx 600 index gaining 0.3% at the close. The dollar index, which tracks the greenback against a basket of six major global peers, climbed 0.1% to 101.84 early on Friday, after touching 102.05, the highest level since March 2003, on Thursday.

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