Markets, Rs ignore Fed; FII demand fuels rally

Dec 21 2013, 01:04 IST
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SummaryThe S&P BSE Sensex shot up and touched the day's high of 21,117.99 before closing at 21,079.72

Despite the US Federal Reserve beginning its much awaited stimulus tapering, Indian stocks and the rupee rallied smartly on the back of heavy foreign inflows.

The S&P BSE Sensex shot up and touched the day's high of 21,117.99 before closing at 21,079.72, up 371.10 points or 1.79 per cent. The rupee recovered after three days of declines to close 10 paise higher at 62.04 against the dollar in the wake of capital inflows.

Reliance, with a 4.58 per cent gain, ONGC and IT stocks lifted the Sensex, helping it to close above the 21,000 level. Oil & gas and realty stocks climbed the most among the 12 BSE sectoral indices.

Disspelling fears of foreign selling after the US Fed decided to modestly trim its bond-buying stimulus, foreign institutional investors (FIIs) bought Rs 2,264 crore worth of stocks on Thursday.

ďThe benchmarks ended the week about 1.25 per cent higher, buoyed by the RBI decision to hold rates and despite the higher-than-expected amount of tapering announced by the US Fed,Ē said Dipen Shah, Head- Private Client Group Research, Kotak Securities.

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