Rupee Rises To 45.9350
OUR BANKING BUREAU
Mumbai, Sept 19: The rupee breathed easy on Friday closing four paise stronger against the dollar at 45.935/945 on the back of the Reserve Bank of Indias (RBI) statement that redemption of the Resurgent India Bonds (RIBs) will not have much impact in the forex market.
Market experts further said the undercurrent continues to be positive on the bourses as is reflected by the strong inflows by foreign institutional investors (FIIs) who have been net buyers to the tune of Rs 803.6 crore in the first four trading sessions of the week ended Sept 19, 2003. FIIs were net buyers to the tune of Rs 231.3 crore on Thursday despite the Sensex having lost over 100 points in a single day.
Hemang Raja, CEO and President, IL&FS Investsmart, said, Although the political tensions were reflected on the bourses today, speculative interest is being filtered out from the market. The FII investment, which continues to be positive over the past few trading sessions, is testimony to this fact, despite the markets having witnessed a roller-coaster ride.
Although we cannot rule out volatility in the coming days, it is interesting to note that even operators are slowly but surely transforming into long-term players. As investors are becoming vastly aware of the fundamentals in the market, we are noticing a trend among them to hold on to their positions, instead of cashing on short-term gains, Mr Raja added.
Heavyweights ITC (up 2.95 per cent to Rs 796.25), Reliance Industries (up 2.83 per cent to Rs 405.20), Hindustan Lever (up 1.77 per cent to Rs 181.45) and State Bank of India (up 1.68 per cent to Rs 410.60) contributed significantly to the recovery of the Sensex in intra-day trades, dealers said.
Tech pivotals also featured among major gainers on Friday. HCL Technologies (up 2.76 per cent to Rs 165.75), Infosys Tech (up 2.19 per cent to Rs 4,339) and Satyam Computer (up 2.08 per cent to Rs 240.90) ended with decent gains - after somewhat volatile intra-day movements - following tech-led recovery in the US markets on Thursday.
Cement pivotals Grasim (up 3.63 per cent to Rs 593.60), L&T (up 2.55 per cent to Rs 293.75) and ACC (up 1.04 per cent to Rs 184.25) also witnessed renewed buying interest following hike in cement prices declared by some of these companies after a recent decline from the higher levels.