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Business News/ Market / Stock-market-news/  Sensex advances 62 points; IT stocks lead gains
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Sensex advances 62 points; IT stocks lead gains

Shares of TCS, Wipro, Infosys rise; Shares of Muthoot Finance, Manappuram Finance retreat as RBI tightens rules for lending against gold

The S&P BSE IT index rose 2.05% to be the biggest gainer, while the S&P BSE Realty index lost 1.08% to be the biggest loser. Photo: Mint (Mint )Premium
The S&P BSE IT index rose 2.05% to be the biggest gainer, while the S&P BSE Realty index lost 1.08% to be the biggest loser. Photo: Mint
(Mint )

Mumbai: India’s benchmark index, or Sensex, rose on Tuesday, although on its lowest volume in nearly one-and-a-half months, led by gains in technology shares that were aided by a weak rupee and attractive short-term valuations due to the recent underperformance of the sector.

Sentiment also got a boost as foreign institutional investors (FIIs) bought $50.2 million worth of shares on Monday, totalling nearly 7,000 crore worth of inflows over the previous eight sessions.

Deutsche Bank AG also said fears of FIIs capitulation are receding following governor Raghuram Rajan’s recent announcements, supportive trade data and easing investment facilitation in debt markets.

However, caution prevailed ahead of the US Federal Reserve’s two-day policy meeting, at which it is widely expected to begin withdrawing stimulus, followed by the central bank policy review on 20 September.

“Nifty was showing indecision in range 5800-5850 today (on Tuesday). Even though it closed near 5850 level, volumes were much lower and market breadth was weak," said Rakesh Goyal, senior vice-president at Bonanza Portfolio Ltd.

The outcome of the Fed meet and the Reserve Bank of India (RBI) policy review will decide the market trend from here onwards, he added.

The benchmark BSE index rose 0.31%, or 61.56 points, to end at 19,804.03, although on its lowest volumes since 2 August, Thomson Reuters data showed.

The S&P BSE IT index rose 2.05% to be the biggest gainer, while the S&P BSE Realty index lost 1.08% to be the biggest loser.

The broader NSE index, the Nifty, rose 0.17%, or 9.65 points, to end at 5,850.20, after earlier slipping below its 200-day moving average for a brief period.

Shares in Indian IT companies gained, tracking weakness in the rupee and as recent underperformance made their short-term valuations attractive, dealers said.

Tata Consultancy Services Ltd (TCS) rose 2.38% to 1,947.05, Infosys Ltd gained 1.04% to 3,023.35, while Wipro Ltd surged 5.41% to 475.35.

Dr Reddy’s Laboratories Ltd rose 3.69% to 2,305.15 after the company said US health regulator approved its generic version of Celgene Corporation’s anti-cancer Drug Vidaza which had US sales of $378.5 million for twelve months ending July, according to IMS Health.

GMR Infrastructure Ltd ended 1.90% higher at 19.30 after the company said it had sold its majority stake in a highway construction unit for about 222 crore, which will help the company reduce its debt.

However, among decliners, India’s gold-based non-banking lenders slumped after the RBI tightened rules on Monday for such companies, in line with the recommendations of an internal panel.

Shares of Muthoot Finance Ltd fell 8.28% to 103.60, while those of Manappuram Finance Ltd slid 4.62% to 15.50.

Bank shares also edged lower ahead of key central bank meetings. ICICI Bank Ltd and State Bank of India lost 0.72% and 0.89%, respectively.

Among other losers, NTPC Ltd lost 1.75% to 140.40, while Sun Pharmaceutical Industries Ltd fell 3.22% to 544.35. Reuters

Mint’s Ravindra Sonavane contributed to this story.

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Published: 17 Sep 2013, 09:45 AM IST
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