Domestic stock markets, ended on a higher note today led by financial services, IT and pharma stocks. S&P BSE Sensex closed at 34,442.05, 1.63 per cent or 550.92 points higher, while the broader NSE Nifty settled at 10,386.60, up 1.85 per cent or 188.20 points.
Thirty-six stocks on the index advanced while fourteen declined. Advances were led by Indiabulls Housing Finance, Tech Mahindra, HDFC, HCL Technologies and Infosys.
“The RBI and the government sitting face to face and discussing the issues is positive for the markets,” AK Prabhakar, head of research, IDBI Capital Markets, told .
During the day, markets swung between gains and losses as caution prevailed as the rupee fell on speculation that the central bank governor Urjit Patel might resign due to a widening rift with the government.
On the 30-share Sensex, gains were led by HDFC, IndusInd Bank, Infosys, Axis Bank, which ended between 2.8 and 5.5 per cent higher.
The Nifty IT, a sectoral index on NSE, gained 4.07 per cent. Tech Mahindra settled 8.59 per cent higher, a day after the company reported a 27.3 per cent jump in net profit to Rs. 1,064 crore for the July-September period.
The Nifty Financial Services, Nifty Pharma and Nifty PSU Bank indices rose 2.32 per cent, 2.33 per cent and 2.42 per cent, respectively. Shares in Indiabulls Housing Finance closed with a gain of 8.17 per cent.
Shares in Lupin ended 0.38 per cent higher, giving up most of the gains registered during the session, after the drug maker reported a 41.5 per cent fall in net profit of 266 crore in the second quarter of the current financial year.
The rupee breached the 74-mark against the dollar again, dropping 43 paise to hit an intraday low of 74.11. Fresh weakness in the rupee against the greenback boosted IT stocks, as depreciation in the currency makes exports more attractive.
Foreign portfolio investors (FPIs) net sold equities worth Rs. 1,592.02 crore while net purchase by domestic institutional investors stood at Rs. 1,363.04 crore on Tuesday, according to provisional data from the NSE.>