Rupee crosses 55; Sensex up 100 points and Thomas Cook is hot favourite

Asset classes from commodities to equities are moving in lockstep to a degree not seen since March 2010

Rajanya Bose May 22, 2012 11:41:11 IST
Rupee crosses 55; Sensex up 100 points and Thomas Cook is hot favourite

Sensex has more or less maintained the morning gains and is now 100 poinst up at 16280. Nifty is up 27 points at 4932. And it is not only India, Asian markets have all gained more than a percent each.

But some of the gains were lost after rupee touched a fresh all time low of 55.09 against the dollar in the morning as measures taken by the Reserve Bank of India to stabilise the currency proved short lived. Regan F Homavazir, Associate VP - Technical Research at Darashaw and Company feels the rupee at its worse could go to 56.5 a dollar.

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Rupee crosses 55 Sensex up 100 points and Thomas Cook is hot favourite

Reuters

Reuters writes, "Asset classes from commodities to equities are moving in lockstep to a degree not seen since March 2010, while currencies such as the yen and defensive stocks such as utilities have unusually joined the rout."

So after a three week sell of across asset classes, there is sudden buying seen in the market which might not mean the end of miseries. In fact, Gaurav Doshi of Morgan Stanley warns that the market may head to December lows if the government inaction continues. "The more realistic scenario right now seems to be that we trade in the range of 5000 to 4500 which is near the lower end being near our December lows, you have a scenario where things in Greece remain uncertain no doubt," he said in an interview to CNBC-TV18.

Thomas Cook India rose 2 percent after the parent company sold 77% stake in Indian unit to Fairbridge Capital at Rs 50 a share and announced open offer at Rs 65.48 a share

IT and auto are the biggest gainers in the market today gaining around 0.8 percent each. Hexaware Tech is the top gainer up 4.15 percent followed by Oracle financial services Software up 3.5 percent. Rural Electrification Corporation is up 3 percent while auto major Tata Motors gained 2.6 percent.

Healthcare and realty are the only two indices in red. Cummins India, Strides Arcolab and Sun Pharma have lost 3 percent each.

National Aluminium Company is trading flat as it recovered losses after reporting its fourth quarter numbers. Its net profit fell 7.6 percent to Rs 282.10 crore on 1.9 percent decline in net sales to Rs 1753.41 crore in the fourth quarter this year over the same quarter last year.

Reliance Industries is up 0.7 percent after the company said it has selected Phillips 66's E-Gas technology for its planned gasification plants at Jamnagar in Gujarat.

Shares of three state-run oil marketing companies, HPCL, BPCL and IOC rose 1-1.2 percent on reports the government will provide Rs 38,500 crore as cash subsidy to state-run oil companies for January-March 2012 quarter.

ABB rose 2.2 percent after the company said it won an order worth around Rs 175 crore from NTPC to build two substations in Maharashtra.

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