Sensex rallies by 373 points after positive WPI numbers and Rupee recovery

Last Updated: Fri, Sep 14, 2018 17:49 hrs
Sensex

Mumbai: The stock markets reacted sharply to the Rupee's modest recovery as well as better than expected macro data numbers.

The thirty scrip sensitive Sensex on the Bombay Stock Exchange spurted by 372.68 points or 0.99% to trade at 38090.64.

The NSE Nifty too breached a level of 11,500 with a jump of 145.30 points in the session on Friday.

According to brokers, the sentiment was largely bullish owing to continuous recovery made by the rupee. Reports of a slump in US economy, tepid Lira impact and surge in Gold prices were reported even as there appeared signs that the government may announce steps to prop up the domestic currency.

On Friday, the rupee strengthened against the Dollar by another 65 paise to 71.53 (intra-day). This was supported by a fall in crude oil prices.

Macro-trends:

Domestic sentiments remained upbeat owing to positive macro data announced after trading hours on Wednesday coupled with a firm trend at Asian indices.

Industrial production (IIP) grew at 6.6% in July, while retail inflation cooled to a 10-month low of 3.69% in August. WPI inflation also eased to a four-month low of 4.53% in August on softening of prices of food articles, especially vegetables.

According to provisional data released on Wednesday, domestic institutional investors (DIIs) remained net buyers picking up shares worth Rs 541.44 crores. However, foreign portfolio investors (FPIs) sold equities to the tune of Rs 1,086.39 crore.

The Ganesh Chaturthi season has seen the markets erupting with joy and over-300 point trading sessions. In the session on Wednesday, the Sensex rallied by 304.83 points.

On a weekly trend, indices closed with losses for the second straight week. The Sensex was yet to recover 300 points from the last week's closure, while the NSE Nifty was yet to regain about 73.90 points from the previous week.

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