The benchmark Sensex after a month breached the 21,000 mark backed by fresh buying from lower levels by foreign institutional investors (FII) and domestic investors.
Though Sensex failed to close above the 21,000 but managed to end the session at 20,986.99, with a gain of 134.52 points. Nifty also rose for the fourth straight session and ended the session with 38.75 points gain at 6,238.80.Despite the splendid performance by the stock markets, rupee fell by four paise to Rs 61.98 per dollar. In the last four sessions, Sensex has surged by 450.35 points with the rally led by information technology, automobile and FMCG shares. The previous time benchmark breached 21,000-level was on January 24, 2014, when it closed the day at 21,333 points.
On the other hand, rupee snapped three days of gains as it lost 4 paise to end the day at Rs 61.98 per dollar. As per forex experts, domestic currency came under pressure due to fresh dollar demand from importers, including oil firms. In the previous three days, the rupee had jumped 29 paise. The dollar index was also up by a modest 0.04 per cent against its major global rivals and added a little pressure on rupee.
"It was a mixed session for the rupee, as locally and globally there was absence of cues. Positive closing of the stock markets and weak dollar index is seen consistently supporting the rupee," said Abhishek Goenka, Founder & CEO of India Forex Advisors.
On BSE, of the 12 sectoral indices 10 indices ended the session with gains while metal and real estate indices fell by 1.8 per cent and 0.52 per cent respectively. The rally was led by capital goods and FMCG indices, both of which rose nearly by 1 per cent. Other gainers include automobile and healthcare indices as they surged by 0.86 per cent and 0.82 per cent respectively.
Off the 30 stocks comprising the Sensex, 22 shares advanced while on Nifty, 33 shares out of 50 listed stocks ended the session with gains. Market experts gave credit to FII buying for improving the overall sentiment as the continued to invest in Indian markets. As per the provisional data provided by the stock exchanges, FIIs invested Rs 511.15 crore in Indian stock markets on Wednesday.
Market breadth turned positive as 1,357 ended higher, while 1,339 finished lower and 145 ruled steady. Indian stock markets are going to be closed on February 27, on the account of Mahashivratri.