Markets up on sharp rupee appreciation

The Indian markets opened positively, and are trading on a strong note after a sharp appreciation in the rupee. Both the bourses are up by 1%. Investors will keep a watch on the rupee that lost 2% yesterday at 52.65 against the dollar, after the announcement of the RBI’s new policy to curb speculation on the currency market.

Asian shares too rose for the first time in the last 4 days after better-than-expected US economic data was released, indicating that the US economy is gaining strength. This further boosted investors’ confidence globally. However, fears still persist with investors over  the Euro zone debt crisis.

On the BSE, all the sectoral indices barring IT and Tech are trading positively, with gains between 1% to 2% each.

Back home, Tata Motors, Tata Power, Bharti Airtel, JP Associates, Reliance Industries, SBI, ICICI Bank, DLF, Sterlite, Hindalco, JSPL, Tata Steel, NTPC and SAIL all gained between 2%-3%.

Among the losers on the BSE Index, all the IT stocks such as Infosys, TCS and Wipro were trading down by 0.5%-1.5% due to the appreciation in the rupee.

The market breadth, which indicates the overall health of the market, is positive. On the BSE, 1438 shares rose, 500 shares fell and 63 shares remained unchanged.

We expect the markets to remain positive for the rest of the day, and advise readers to play with caution.