Mumbai, Sept. 18: A late buying surge in an otherwise cautious session pushed the Sensex up a little over 158 points to 19962.16 as investors awaited a crucial decision by the US Federal Reserve on the tapering of its stimulus programme.
The positive finish pointed towards a sense of optimism among participants about a moderate winding down of the Fed’s stimulus plan, called quantitative easing III.
The programme involves a monthly purchase of $85 billion in bonds. It is now largely felt that the gradual withdrawal will see purchases trimmed by $10 billion per month to $75 billion. However, over the past couple of months, domestic investors have turned jittery over a tapering of the bond purchases squeezing liquidity flows to India.
On the BSE, the 30-share Sensex resumed higher than yesterday’s close of 19804.03 and moved between 19775.29 and 20013.33 for most of the day before ending at 19962.16. On the NSE, the 50-share CNX Nifty gained 49.25 points, or 0.84 per cent, to 5899.45.
The rupee remained range bound, closing a paisa lower at 63.38 against the dollar, the narrowest movement in four months.