SENSEX EXTEND PROFITS

The benchmark Sensex rose for the second day in a row today, adding 39 points in choppy trade ahead of state assembly election results and a US jobs report. The index closed just shy of the 21,000 level amid strong capital inflows from foreign funds and as the rupee gained for the third straight day. Shares of power generation and distribution companies rose on strong demand from investors during the follow-on public offer of state-run Power Grid Corporation of India. PSU, consumer durables, capital goods, metal and banking sector shares also moved up. The S&P BSE Sensex fell in early trade to the day's low of 20,922.45 before recovering to 21,049.84. The index ended at 20,996.53, showing a gain of 38.72 points or 0.18 per cent. It was the highest close for the Sensex since November 3 and the second successive week of gains. Exit polls after elections ended on December 4 showed gains for the BJP in Delhi, Chhattisgarh, Madhya Pradesh and Rajasthan. The results are due on Sunday.

RUPEE UP 34 PAISE

The rupee ruled firm for the third consecutive day and moved up 34 paise to 61.41 against the dollar today, the highest level in more than five weeks, on sales of the US currency by banks and exporters amid foreign capital inflows into the local equity market. The rupee resumed higher at 61.64 per dollar from yesterday's closing of 61.75 at the interbank foreign exchange market. It hovered in a range of 61.40 to 61.70 before ending at 61.41, a gain of 34 paise or 0.55 per cent. It was the third weekly gain for the local currency. Banks and exporters preferred to reduce their dollar positions as overseas investors bought local shares. They purchased a net Rs 1,151.51 crore of shares yesterday, according to provisional data from the stock exchanges. In the global market, the dollar edged higher today ahead of the release of the US jobs report for November, due later in the day. The report may give investors an indication of when the Federal Reserve will ease its stimulus programme.