Post Session- Sensex gains for third day on rupee support measures Analysis for Aug 13, 2013

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The key domestic benchmarks closed higher today as the Sensex rose for a third straight session as easing consumer inflation boosted sentiment while the government outlined new measures to stem India"s ballooning current account deficit and support the struggling local currency. Finance Minister P Chidambaram said yesterday that the government plans to curb some imports and attract more capital inflows to support the rupee. India"s consumer inflation stood at 9.64 per cent in July 2013, down from 9.87 per cent in June 2013. Rate-sensitive stocks rose after the RBI chief D Subbarao said that “perhaps" there was a requirement to cut cash reserve ratio or the statutory liquidity ratio. Investors shrugged off the weak IIP data which showed that industrial output shrank 2.2 per cent in June 2013 from the year ago month, deepening economic slowdown fears.

On the Asian front, stocks rose as investors were optimistic ahead of the US retail sales data which may signal a positive outlook for the world"s biggest economy. Shanghai Composite rose as lenders gained after Industrial Bank Co. reported a surge in first –half profit. Hang Seng rose on optimism over the health of the world"s second biggest economy following healthy economic data last week. Nikkei 225 advanced as a weaker yen boosted the outlook for exporter stocks while speculation heightened that Japanese Prime Minister Shinzo Abe may cut corporate taxes to boost sagging investment. The Bank of Japan said that it expects moderate growth in the world"s third biggest economy even as a report showed that core machinery orders in Japan, an indicator of capital spending, fell 2.7 per cent in June 2013.

The BSE SENSEX closed at 19,229.84, up by 282.86 points or by 1.49 per cent and the NSE Nifty ended at 5,699.3 up by 86.9 points or by 1.55 per cent.

The BSE Sensex touched intraday high of 19,248.11 and intraday low of 18,864.81 The NSE Nifty touched intraday high of 5,704.75 and intraday low of 5,578.9.

Meanwhile, the BSE MIDCAP closed at 5,554.03, up by 61.78 points or by 1.12 per cent, while the BSE SMLCAP ended at 5,369.42 up by 53.44 points or by 1.01 per cent.

On the Sectoral front, Realty and Banking rose 4.46 per cent and 2.92 per cent, respectively.

The Market breadth, indicating the overall health of the market, was strong. On BSE out of total shares traded 2562, shares advanced were 1478 while 933 shares declined and 151 were unchanged.

The top gainers of the BSE Sensex pack were NTPC Ltd. (Rs. 143.85,+4.01%), Tata Motors Ltd. (Rs. 291.15,+3.61%), ICICI Bank Ltd. (Rs. 893.10,+3.10%), HDFC Bank Ltd. (Rs. 620.00,+3.06%), Bajaj Auto Ltd. (Rs. 1860.10,+2.94%), among others.

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Story first published: Tuesday, August 13, 2013, 16:48 [IST]
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