The Hindu Business Line : Sensex moves up 111 on fresh FII buying

STOCK prices continued their upward movement for the fifth day in a row as FIIs returned to make fresh purchases even as the rupee touched a new low of 46 against the US dollar in early morning trade.

The BSE Sensex opened firm and moved up further as the day progressed. At the end of Tuesday's session, the Sensex gained by 111 points to close at 8,317. NSE's S&P CNX Nifty moved up by 31 points to finish at 2,492 after crossing the 2,500-level intra-day.

Brokers said most of the negatives appear to have been discounted by market players in the last few days. They said even the fall of rupee to a year's low of 46 did not dampen sentiment. "The fall in the rupee has been discounted by the market," said a dealer.

The rupee breached the psychological level of 46 against the greenback during the earlier part of the session, but recovered some of its losses on speculation that RBI intervened and sold dollars through PSU banks.

The home currency opened at 45.98-46 and touched an intra-day low of 46.06, earlier in the day. Forex dealers said that the rupee was tracking the weakening euro, which touched $1.1725. It, however, appreciated to 45.82 aided by dollar inflows and finally closed at 45.79. On Monday, it had ended at 45.90/91.

A dealer at a private bank said that worries about tightening liquidity in the system and higher call rates with RBI stepping in also prompted some foreign banks to sell dollars.

With today's gain, the BSE Sensex is up by more than 600 points in the last five trading sessions.

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