The Telegraph
Since 1st March, 1999
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Stocks shine, rupee at 11-month high

Mumbai, Nov. 15: The spate of positive announcements in the last few days breathed life into the local financial markets with the main index denominators and the rupee making impressive inroads and registering imposing gains today.

The reinvigorated bulls propelled the BSE sensex by 47.35 points and thus pierced the 3000-psychological barrier to end at 3033.91 at the Bombay stock exchange (BSE) as an all-round rally in the stock markets and the forex markets which saw the bears scampering as Moody's Investors Service was set to upgrade India's foreign currency ratings, while MSCI raised India's weightage in the emerging markets.

The rupee ended close to its 11-month high, on news that Moody's Investors Service might upgrade the country's foreign currency debt rating. Premiums on the forward dollar, which reflect the market perception that US dollars will weaken in the future, crashed.

The rupee closed at 48.20/21 per dollar, gaining 0.12 percent as Moody's announcement encouraged exporters to sell dollars and banks to lighten long positions. The rupee has now gained 1.8 per cent from its life low of 49.08 hit in mid-May.

Arun Kejriwal of Kejriwal Research & Investment Services sounding ecstatic said: A one-way rally led by software stocks saw the rally extending to Telco, Tisco, Zee as institutional funds are being pumping into the market.

The rally today was led by technology sector. Key tech counters like Infosys and Satyam were in the limelight as old economy shares surged up to a strong finish.

Mirroring the euphoria, the sensex opened firm at 2997.47 and gradually moved upwards to the intra-day high at 3037.61 before ending at 3033.91 as against yesterday's close of 2986.56.

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