Thursday, 8 August 2013

Markets edge higher as Rupee rebounds

After a two day knock the markets edged up with many of the beaten down names reversing some of their losses. Sensex ended 125 points higher to end at 18789 and Nifty ended 47 points up to close above 5550. Most of the banks baring SBI and Metals had a positive tick by the time the markets closed. IT stocks after a pause yesterday resumed their up move today and realty and Infra stocks also had a good day. However the star of the day was Ranbaxy. The stock was up 28% after its Q1 results. Part of it was also because of short covering. 

The Rupee has been having a see-saw trade with alternate down days and up days. After yesterday’s 53ps weakening, the Rupee strengthened 42ps today to close above 61 at 60.88. Much of it was in anticipation of some measures that may be announced over the weekend to shore up the currency. Commodities had an absolutely flat day with Gold and silver not showing any major move in either direction.

The truncated week finally comes to an end with a 2% cut on the frontline indices and unquantifiable damage to the investors’ confidence because of the way the trading universe cracked. Now the action will resume next week and it will be interesting to see if markets choose to rally some more or decides to resume its down move.


----- Harish Sridharan
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