Key benchmark indices held firm in afternoon trade as the rupee hitting two-week high against the dollar on receding geopolitical risks from Syria boosted sentiment. Gains in global stocks also underpinned sentiment. The S&P BSE Sensex, was up 495.53 points or 2.57%, up close to 320 points from the day's low and off about 60 points from the day's high. The market breadth, indicating the overall health of the market, was strong. All the thirteen sectoral indices on BSE were trading in the green. Metal and mining stocks gained after data showed China's industrial output grew at the fastest pace in 17 months in August. Realty stocks also gained. Cipla scaled record high.
Key benchmark indices rallied in early trade on firm Asian cues. The stock market had remained closed on Monday, 9 September 2013, on account of Ganesh Chaturthi. Key benchmark indices surged in morning trade as the rupee rose to a two-week high on receding geopolitical risks from Syria. The barometer index, BSE Sensex, hit over six-week high. The CNX Nifty hit six-week high. Key benchmark indices hit fresh intraday high in mid-morning trade. Market hit fresh intraday high in early afternoon trade. It held firm in afternoon trade.
The market sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on Friday, 6 September 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 800.71 crore on Friday, 6 September 2013, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee rose to a two-week high on Tuesday as receding geopolitical risks from Syria and strong exports in August helped lift the currency. The partially convertible rupee was hovering at 64.26, stronger than its close of 65.24/25 on Friday, 6 September 2013. Financial markets were closed on Monday, 9 September 2013, on account of Ganesh Chaturthi. The rupee has seen a steep recovery from an all time low of 68.85 hit on 28 August 2013. Rupee depreciation fuels inflation, increases import bill and current account deficit. It also increases the government's spending on fuel subsidies, potentially widening the fiscal deficit.
At 13:20 IST, the S&P BSE Sensex was up 495.53 points or 2.57% to 19,765.59. The index surged 557.09 points at the day's high of 19,827.15 in early afternoon trade, its highest level since 26 July 2013. The index gained 174.60 points at the day's low of 19,444.66 in early trade.
The CNX Nifty was up 142.45 points or 2.51% to 5,822.85. The index hit a high of 5,850.85 in intraday trade, its highest level since 30 July 2013. The index hit a low of 5,738.20 in intraday trade.
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The market breadth, indicating the overall health of the market, was strong. On BSE, 1,328 shares gained and 678 shares fell. A total of 106 shares were unchanged.
Among the 30-share Sensex pack, 27 stocks gained and only three of them declined. HDFC (up 4.88%), L&T (up 5.79%) and Hero MotoCorp (up 3.99%), edged higher from the Sensex pack.
Tata Motors jumped 9.19% to Rs 347 after striking a record high of Rs 348.80 in intraday trade today, 10 September 2013. It was the top gainer from the Sensex pack. PT Tata Motors Distribusi Indonesia (TMDI), wholly owned subsidiary of Tata Motors today, 10 September 2013 announced its foray into the Indonesian automotive industry with the launch of three new exciting Tata passenger vehicles -- the Tata Aria, the Tata Vista and the Tata Safari Storme. These three models, launched today, are the new-age range of Tata's extensive passenger vehicles which are unique, quality products, perfectly matched, to meet growing demand among Indonesian consumers of contemporary, next-generation car offerings, seven-seat crossover variants, and tough, durable SUV's. With these three debut products, TMDI believes that Indonesian consumers will be able to enjoy best vehicle experience.
Tata Motors announced on 9 September 2013 its partnership with DRB-HICOM, Malaysia's biggest conglomerate, for the import, distribution and assembly of Tata Motors Commercial Vehicles in Malaysia, an important milestone in the continued expansion of the company's global footprint.
As part of the agreement, Tata Motors signed a Distribution Agreement (DA) and Technology License Agreement (TLA) with USF-HICOM (Malaysia) Sdn. Bhd., a subsidiary of DRB-HICOM Berhad. Tata Motors also signed another Importation Agreement (IA) with another DRB-HICOM subsidiary, DRB-HICOM Auto Solution Sdn. Bhd. (DHAS) and USF-HICOM.
Metal and mining stocks gained after data showed China's industrial output grew at the fastest pace in 17 months in August. China is the World's largest consumer of copper and aluminum. NMDC (up 0.7%), Sesa Goa (up 0.91%), Hindustan Zinc (up 3.02%), Tata Steel (up 1.28%), Hindalco Industries (up 0.01%) and JSW Steel (up 1.51%), edged higher.
Jindal Steel & Power rose 0.77% to Rs 235.15. The company after market hours on Friday, 6 September 2013 announced buyback of its shares worth Rs 1000 crore at the maximum price of Rs 261 a share. The buyback process will be through open market transaction and will open on 16 September 2013. The company said in a statement to the stock exchanges that at the maximum quantity of shares that can be bought back would be 3.83 crore equity shares. The company's board had approved the resolution for buy back on 30 August 2013.
Realty stocks also gained. DLF (up 3.19%), HDIL (up 1.67%), Sobha Developers (up 5.97%), Unitech (up 1.18%) and D B Realty (up 1.41%), gained.
Cipla rose 0.45% to Rs 439.55 after hitting a record high of Rs 446.50 in intraday trade today, 10 September 2013.
European stocks advanced to a three-week high on Tuesday as data showed Chinese industrial production and retail sales rose in August, adding to signs the global economy is rebounding. Key benchmark indices in France, Germany and UK rose by 0.72% to 1.1%.
Asian stocks hit three-month high on Tuesday ahead of a fresh round of Chinese economic data and signs that Syrian tensions are easing. Key benchmark indices in China, Taiwan, Hong Kong, Indonesia, South Korea, Singapore and Japan rose by 0.2% to 2.77%.
China's industrial output grew at the fastest pace in 17 months in August, adding to signs of a rebound this quarter that include a pickup in export gains. Factory production rose 10.4% from a year earlier, the National Bureau of Statistics said in a statement in Beijing today. Retail sales rose 13.4% in August higher than 13.2% gain in the previous month.
Trading in US index futures indicated that the Dow could gain 40 points at the opening bell on Tuesday, 10 September 2013. US markets ended higher on Monday, helped in part by hopes that the threat of a US military intervention in the Middle East could be abating.
Russia on Monday proposed to work with Damascus to put its chemical weapons under international control, a move that President Barack Obama said could be "potentially positive".
Investors across the globe are eyeing the next policy meeting of the Federal Open Market Committee (FOMC) scheduled this month, with their focus squarely on the timing of tapering of Federal Reserve's bond purchases. The FOMC holds a two-day policy meeting on 17-18 September 2013 to decide on interest rates in the United States. The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
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