Key benchmark indices hit fresh intraday high in mid-morning trade as the rupee rose to a two-week high against the dollar on receding geopolitical risks from Syria. Gains in Asian stocks also underpinned sentiment. The S&P BSE Sensex was up 537.63 points or 2.79%, up 363.03 points from the day's low and off 14.47 points from the day's high. The market breadth, indicating the overall health of the market, was strong.
Index heavyweight and cigarette maker ITC extended intraday gain. Reliance Industries rose. Auto stocks were in demand on renewed buying. Tata Motors surged to record high. Bharat Heavy Electricals declined in volatile trade on profit booking after recent rally.
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.
The market sentiment was 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 64.32, 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 11:21 IST, the S&P BSE Sensex was up 537.63 points or 2.79% to 19,807.69. The index surged 552.10 points at the day's high of 19,822.16 in mid-morning 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 164.15 points or 2.89% to 5,844.55. The index hit a high of 5,847.80 in intraday trade, its highest level since 30 July 2013. The index hit a low of 5,738.20 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,210 shares gained and 456 shares fell. A total of 86 shares were unchanged.
The total turnover on BSE amounted to Rs 883 crore by 11:20 IST compared to Rs 583 crore by 10:20 IST.
Among the 30-share Sensex pack, 28 stocks gained and only two of them declined. HDFC (up 5.99%), L&T (up 5.64%) and Coal India (up 3.26%) edged higher from the Sensex pack.
Auto stocks led today's market rally. Tata Motors jumped 7.72% to Rs 342.30 after striking a record high of Rs 343.15 in intraday trade today, 10 September 2013. It was the top gainer from the Sensex pack.
Maruti Suzuki India gained 3.69%. The company said during market hours on Friday 6 September 2013 that its production jumped 62.63% to 91,261 units in August 2013 over August 2012. The company said on 2 September 2013 that its total sales spurted 61.2% to 87,323 units in August 2013 over August 2012. Domestic sales rose 51.6% to 76,018 units in August 2013 over August 2012. Exports spurted 180.9% to 11,306 units in August 2013 over August 2012.
Mahindra & Mahindra (M&M) advanced 2.38%.
Ashok Leyland rose 2.93%.
Two-wheeler major Hero MotoCorp rose 2.96%. Bajaj Auto gained 2.46%.
Index heavyweight and cigarette maker ITC surged 3.94% to Rs 328.65, with the stock extending intraday gain.
Reliance Industries rose 0.44% to Rs 871.35.
Bharat Heavy Electricals (Bhel) lost 0.57% to Rs 140.75, with the stock sliding on profit booking after recent rally. The stock was volatile. The stock lost as much as 3.21% at the day's low of Rs 137 so far during the day. The stock rose as much as 3.42% at the day's high of Rs 146.40 so far during the day. Shares of Bhel had rallied 18.55% in three sessions to settle at Rs 141.55 on Friday, 6 September 2013, from a recent low of Rs 119.40 on 3 September 2013.
Meanwhile, Bhel said after market hours on Friday, 6 September 2013, that consequent upon the merger of Bharat Heavy Plate & Vessels (BHPV) with the company, the BHPV plant is renamed as Heavy Plates & Vessels Plant (HPVP) and designated as the 17th manufacturing unit of Bhel located at Vishakhapatnam, Andhra Pradesh.
The Reserve Bank of India said on Thursday, 5 September 2013 that it will release the next Mid-Quarter Review of Monetary Policy 2013-14 at 11 IST on 20 September 2013 instead of 18 September 2013 as indicated in the First Quarter Review of Monetary Policy 2013-14. This will be followed by Governor Dr. Raghuram Rajan addressing the media in the afternoon.
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, Hong Kong, Indonesia, South Korea, Singapore and Japan rose by 0.31% to 1.81%. Taiwan's Taiwan Weighted index shed 0.17%.
Trading in US index futures indicated that the Dow could gain 21 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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