The Hindu Business Line : Markets rally on sustained FII inflows

The rupee strengthened beyond Rs 45 a dollar, the first time in the last two months. The benchmark BSE Sensex gained 138 points to touch 12,109. Bonds prices witnessed a single-day gain of 75 paise.

The rupee ended the day at Rs 45.97 a dollar, against the previous close of Rs 46.08. A dealer said the rupee could even touch Rs 45.90 tomorrow, provided other currencies like the euro gain against the dollar. The new cap for the rupee could be Rs 46.10 and Rs 45.95 could be the new support level.

To most market analysts, the surge of BSE Sensex by 138.67 points to end the day's trading at 12,109.14 came as a sweet surprise. The market recovered "remarkably" from Tuesday's slump of around 100 points piggybacking on select blue-chip stocks. The Sensex went up 1.16 per cent on Wednesday.

NSE's S&P CNX Nifty ended the day at 3,502.80 points, up by 45.45 points or 1.31 per cent.

Rumours of the Department of Telecom allowing cellular operators share communication infrastructure increased the movement of stocks of major cellular operators.

Domestic bond prices surged by around 75 paise, tracking the gains made by the US treasury yields. The 7.59 per cent-10 year-2016 benchmark paper ended at Rs 99.85 (7.61 per cent YTM), against Tuesday's Rs 99.07 (7.73 per cent YTM).

Ahead of the Federal Open Market Committee meeting scheduled late on Wednesday, the US 10-year yield eased to 4.73 per cent (4.81 per cent).

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