Sensex continues to rule firm for 2nd day, rallies 300 points; Rupee up by 31 paise

Mumbai: The BSE benchmark Sensex firmed up further for the second consecutive day by gaining 286 points in the late morning trade on persistent buying in view of firm Asian cues coupled with sustained capital inflows from foreign funds.

Shares of banking, capital goods, IT, tech, realty and FMCG sectors moved up on good buying enquiries. The Sensex resumed higher at 20,570.59 and shot up further to 20,702.00 before quoting at 20,685.66 at 1030 hrs, showing a gain of 286.24 points or 1.40 per cent from its last close. At 1045 hrs, sensex rose by 304.66 points or 1.49 per cent to 20,704.08.

The NSE 50-share Nifty rose by 82.95 points or 1.37 per cent to 6,139.10 at 1030 hrs. Major gainers were Larsen (2.71 per cent), ICICI Bank (2.71 per cent), HDFC Bank (2.55 per cent), Wipro (2.54 per cent), ITC (1.92 per cent) and Reliance Industries (1.90 per cent).

Foreign institutional investors (FIIs) bought shares worth a net Rs 970.03 crore on last Thursday as per provisional data from the stock exchanges. Asian markets were trading higher in their early trade following firm cues from Wall Street.

Key benchmark indices in Taiwan, Hong Kong, China, Singapore, Japan and South Korea rose by 0.19 per cent to 2.14 per cent. US stocks stepped higher on last Friday, lifting the S&P 500 and Dow to record closes, as investors continued to find encouragement in Janet Yellen's support for the Federal Reserve's stimulus efforts.

Rupee firms up by 31 paise vs dollar in late morning trade

The rupee maintained its firm trend for the third day in a row in late morning trade by gaining 31 paise to 62.80 per dollar on persistent selling by exporters and banks on the back of weak dollar overseas amidst strong equity market.

Sustained foreign capital inflows into equity market also boosted the rupee value against the dollar, a forex dealer said.

The rupee resumed higher at 62.85 per dollar as against the last weekend's level of 63.11 per dollar at the Interbank Foreign Exchange (Forex) Market and hovered in a range of 62.92-62.76 per dollar before quoting at 62.80 per dollar at 1040hrs.

In New York market, the US dollar dropped against most rivals on last Friday in the wake of weak economic data and dovish testimony from Federal Reserve chairperson nominee Janet Yellen, as investors continued to speculate about when the Fed could begin to reduce its stimulus.