Sensex rallies to 15-month high

Aggressive buying in metal, banking, consumer goods and automobile counters

MUMBAI: Discarding mixed global cues, the benchmark Sensex on Tuesday set a fresh 15-month high of 16454 by adding over 240 points on hectic buying by funds on reports of advance tax payments by some big corporate houses.

After snapping its previous six-day winning streak on Monday, the BSE Sensex opened strong and improved further to settle the day at 16454.45, higher by 240.26 points than its last close. The last time the key index witnessed this level was on June 2 last year.

Marketmen said funds were aggressive buyers across realty, metal, banking, auto and consumer goods counters as they sensed promising second quarter earnings by Indian corporates. They said second instalment of advance tax payments by some big corporate was higher indicating revival in the economy.

All-round buying saw all sectoral indices closing with gains but realty, metal, banking and auto led the rally.

Total market breadth remained positive as 1,801 counters finished with gains against 994 that ended with losses on the BSE.

Rupee bounces back

In line with the recovery in equity markets, the rupee bounced back on Monday and closed higher by more than nine paise at 48.6350/6450 against the U.S. currency on sustained capital inflows. Rise in other Asian currencies also partly aided the rupee sentiment.

In lackadaisical trade at the inter-bank foreign exchange market, the rupee resumed higher at 48.62/64 against its last close of 48.73/74 a dollar.

It later moved in a range of 48.55 and 48.69 a dollar.

The Reserve Bank of India, however, fixed the reference rate for the U.S. dollar at Rs 48.57 and for the euro at Rs 71.06.

Meanwhile, the global crude oil was below the $ 69 a barrel in Asian trade. — PTI