Market review: Sensex recovers 197pts

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Expectations of more reform measures pushed up Sensex by 197 points to 18,506.57, snapping two weeks of losing spree. (Reuters) Expectations of more reform measures pushed up Sensex by 197 points to 18,506.57, snapping two weeks of losing spree. (Reuters)
SummaryExpectations of more reform measures pushed up Sensex by 197 points to 18,506.57, snapping two weeks of losing spree.

3.64 per cent. Previously, it had settled at 55.66 on September 6, 2012.

The BSE benchmark Sensex closed the week up by 197.20 points or 1.08 per cent, while FIIs bought shares worth Rs 1,671.47 crore, including provisional data of November 23.

The U.S. dollar slumped against its six major rivals as investors showed a growing appetite for stocks, reducing the safe-haven appeal of the greenback.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said," A better start for the week was followed by sharp weakness in INR which continued to remain volatile with a weak note during the week witnessing sharp declines on the last day of the week while closing on a 10-week low."

"The domestic fundamentals continued to dominate the Indian currency trade which defied reacting along with the gains of cable and other emerging market currencies. "The opposition along with ex coalition partners of the government demand for a vote on FDI in retail and also pressured the government for a no confidence motion in parliament.

The political embargo if continues shall witness the INR easing above the 56.00 levels.

"The sheer disappointment in the participation of 2G auction where most of the circles remained unauctioned due to higher prices also dented the rupee performance," he added.

"For the week Importers can create a partial hedge around the 55.00-54.50 levels for their payments and Exporters can use the weakness towards 55.80 - 56.20 levels to initiate short hedge to cover their receipts.

"The crucial levels for INR appreciation are 54.80 levels and for depreciation the 55.80 levels can be closely watched as rise above 55.80 levels shall weaken the pair till 56.20 levels. Strong support is placed at 55.10 levels whereas resistance is pegged at 55.80 - 56.00 levels. Buy in dip to 55.10 with a stop loss below 54.50," he further commented.

RBI fixed the reference rate for US dollar and euro at Rs 55.3445 and Rs 71.3665 from Rs 54.9915 and Rs 70.2230 last weekend, respectively.

The rupee premium for the forward dollar ended steady to easy on fresh receipts by exporters.

The benchmark

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