Sensex extends winning streak for fourth day

By Abhishek Vishnoi

MUMBAI (Reuters) - The BSE Sensex rose on Wednesday for a fourth consecutive session, led by Tata Group companies after Tata Motors surged on unit Jaguar Land Rover's July sales, while Tata Steel gained as its quarterly profit nearly doubled.

Gains accelerated in the afternoon, tracking European shares after data showed growth in the euro zone pulled out of its longest recession after unexpected strength in the German and French economies.

Still, some caution remains as the rupee is stuck near record lows with data on Wednesday showing India's annual wholesale inflation rose to a five-month high of 5.79 percent raising the stakes as the country's policy makers struggle to prop up the currency.

 

The government's proposals this week to curb imports and raise capital inflows have fallen flat so far, while the Reserve Bank of India's gambit to raise short-term interest rates and drain cash could further choke off growth by keeping borrowing costs high.

"Although it is a tough time for the Indian economy and markets, the key would be when rupee stabilises and RBI withdraws its measures," said G. Chokkalingam, chief investment officer at Centrum Wealth Management.

The BSE Sensex rose 0.72 percent, or 137.75 points, to end at 19,367.59, marking its highest close since July 29. The index has gained 3.8 percent over the previous four sessions.

The Nifty rose 0.75 percent, or 43 points, to end at 5,742.30, closing above the psychologically important 5,700 level.

Tata Motors jumped 9.7 percent, marking its biggest single-day percentage gain since March 2010, after unit Jaguar Land Rover said on Tuesday it sold 31,611 vehicles in July globally - its best sales in July ever.

Tata Motors later said global wholesale vehicle sales fell an annual 14 percent in July, as a sharp rise in the sales of its luxury Jaguar Land Rover cars failed to offset sluggish passenger and commercial vehicle sales.

Tata Steel shares rose 3.6 percent after the company's quarterly profit nearly doubled as costs fell sharply, making up for a dip in sales.

Meanwhile, Tata Consultancy Services gained 0.8 percent, tracking a weak rupee and optimism about its earnings outlook, in part, on the back of an improving U.S. economy.

Among other Tata Group stocks, Tata Communications rose 7.3 percent while Tata Power ended 2.4 percent higher.

Bajaj Auto shares gained 2.7 percent after India's second-largest motorcycle maker said on Tuesday the workers' union at its Chakan plant in western India had called off a strike that started in end-June.

Escorts shares rose 20 percent to its maximum daily limit after its April-June net profit rose over three-fold to 583 million rupees.

DLF gained 6.4 percent adding to Tuesday's 7.9 percent gain after the company's April-June earnings surpassed expectations.

However, among stocks that fell, Financial Technologies fell 13.2 percent on continued concerns after its commodity exchange unit National Spot Exchange Ltd (NSEL) halted its electronics trading services since August 6.

(Editing by Sunil Nair)