Sensex up 581 points as IT, pharma rally on weak rupee - Times of India

Sensex up 581 points as IT, pharma rally on weak rupee – Times of India

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MUMBAI: After falling over 600 points early in Tuesday’s session mainly due to a sell-off in the US markets the previous night, the sensex made a strong comeback in late trades to close 581 points higher at 53,429. Exporters and financials led the rally mainly because a weak rupee would add to their bottomline, while Reliance Industries continued to face selling pressure as the rising crude oil price is seen as a drag on the prices of its products.
The day’s gains came despite heavy foreign fund selling with the session’s net outflow from the stock market at Rs 8,143 crore, that’s more than $1 billion, one of the biggest single-session net outflow figures in recent months. The day’s outflow number also took the year’s total figure to over Rs 1 lakh crore, BSE and CDSL data showed.
After the early slide in the sensex, the recovery came on the back of buying in software exporters. In the broader market, stocks of pharma companies that show substantial export revenues, also rallied.
According to Vinod Nair, Head of Research, Geojit Financial Services, domestic indices reversed its trend and traded with gains led by export-oriented sectors like pharma and IT which witnessed buying interest as the rupee fell to its record lows. Favourable exit poll results of state elections and buying in mid- and small-caps at lower levels also helped in restoring some optimism among domestic investors, he wrote in a post-market note. In early session, some of the western markets were also trading in the green which also helped the recovery in the domestic market, he said.
Among the leading exporters, Sun Pharma closed 4% higher while TCS was up 3.3% and Wipro closed with a 2.7% gain. While the healthcare index on BSE closed 2% higher, the IT index closed 2.4% up.



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