Sensex rises over 1 pct as IT, steel firms advance

Sensex rises over 1 pct as IT, steel firms advance

Last Updated: Fri, Nov 25, 2016 13:31 hrs
Sensex

Indian shares rose more than 1 percent on Friday as software services exporters such as Infosys Ltd were boosted by a weaker rupee while steel makers extended gains after the government imposed anti-dumping duties on some imports.

The rupee rebounded to 68.46 per dollar from a record low of 68.8650 hit in the previous session after heavy intervention by the central bank in the morning, though traders said they expected the local currency to remain under pressure due to a rally in the greenback.

Sentiment was also boosted as Asian shares advanced, while low roll-overs at the expiry of monthly derivatives on Thursday spurred more buying in cash markets.

However, both the NSE and the BSE indexes were headed for a flat finish for the week after shedding about 2.5 percent each in the previous week, amid continued worries about the impact of demonetisation on economic growth.

Anand James, chief market strategist at Geojit BNP Paribas Financial Services, said he expected markets would remain under pressure in the near term.

"Significant buying was expected today after derivatives rollover figures were the least in last three to four months," he said.

"Demonetisation will continue to impact the market in the near term."

The broader NSE index was 1.3 percent higher at 8,067.30 as of 0713 GMT, while the benchmark BSE index was up 1.13 percent at 26,152.18.

IT stocks accounted for over half of the NSE index's gains as Infosys and Tata Consultancy Services Ltd extended gains on the rupee's weakness. Infosys rose as much as 5.9 percent, while TCS climbed up to 4.6 percent.

Most steel stocks were trading in the green after the government imposed anti-dumping duties on hot-rolled flat sheets and plates of alloy or non-alloy steel to curb cheaper imports into the country. Tata Steel was among the top gainers, rising as much as 3.9 percent.

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