Markets edge up but Rupee breaks down

Both the benchmark indices ended in the green for fourth consecutive day. After a volatile first half, buying in the second half pushed the indices higher. Sensex closed 138 points up at 19368 and Nifty closed at 5742 up 43 points over yesterday’s close. Autos had a spectacular day led by Tata Motors, which gained 10% to end at 319 after its global JLR sales numbers came in much higher than the last month. Tata steel also had a good outing and the stock is now up close to 25% in the last six trading sessions.

Oil and Gas also had a good session anticipating Diesel price hike in the next couple of days. Banking and IT also had a reasonable day, but the midcaps were see-sawing with few ending stronger and the rest witnessing some profit booking after a good run the past few sessions.

Coming to Rupee there is a sense of despair clearly visible. No amount of tinkering seems to abate the fall in the currency. The markets, it seems want a credible solution for CAD before relenting. Rupee closed 24 paise lower at 61.43 registering yet another lowest ever closing however closed just shy of the psychological barrier of 61.50.

The markets go into a well deserved holiday tomorrow after three days of hard running, but with global markets open Friday can be a very interesting day to watch.

----- Harish Sridharan