The market cheered after Tokyo announced doubling of its investments in India and committed itself to putting Rs 2,10,000 crore, in the country’s public and private sector projects over the next five years.
Overseas investors bought shares worth 5.54 billion rupees on Monday, provisional exchange data showed.
The rupee is trading at 60.66/67 versus Monday’s close of 60.5250/5350, tracking weaker emerging Asian currencies after US Labour Day holiday on Monday.
Current account deficit for this financial year’s first quarter, April to June, narrowed sharply to 1.7% of gross domestic product ($ 7.8 billion) from 4.8% of GDP ($ 21.8 bn) in the corresponding period of 2013-14. However, it was up sequentially.
Asian shares slipped on Tuesday as a U.S. holiday robbed markets of momentum, while the euro hit a fresh one-year low on uncertainty over the European Central Bank’s policy decision later this week. Hang Seng is down 0.3%.
Tokyo’s Nikkei bucked the trend and rose 1.5%, with a planned cabinet reshuffle by Prime Minister Shinzo Abe helping fuel reform hopes.
Sectors & Stocks:
Stocks of auto companies continued their rising streak on the back of strong domestic car sales numbers for the month of August. Hero Motocorp, Bajaj Auto, Maruti Suzuki and M&M have gained between 0.1-2.5%. However, Tata Motors is down 1.4% after it reported 17.59% decline in total sales at 40,883 units in August, 2014 as against 49,611 units in the same month last year.
Bharti Airtel has moved higher by 3% on the BSE extending its previous day’s gain after the company said it’s arm signed an agreement to acquire over 2.7 million subscribers of yuMobile.
In the financial segment, HDFC twins, Axis Bank, ICICI Bank and SBI are trading higher between 0.3-1.4%.
ITC, BHEL and TCS are some of the notable names in green among others.
On the flip side, metal stocks are losing sheen in the late morning trades with Sesa Sterlite, Hindalco, Tata Steel and Coal India trading down between 0.4-1.3% shrugging off the government’s request to the apex court not to cancel the permits for 46 coal blocks.
On similar lines, power stocks are trading down. Tata Power and NTPC have lost 0.3%.
Fresh selling is evident in the technology pack. IT majors Infosys and Wipro have declined 0.7% each.
HUL, ONGC and L&T are some of the prominent names in red among others.
Among other shares, TVS Motor Company is trading higher by 3% at Rs 200 on National Stock Exchange after reporting a robust 46% year-on-year (yoy) growth in total sales in the month of August 2014 to 227,482 units. The company had sold 155,532 units in the same month last year.
The broader markets are outperforming the benchmark indices- BSE Midcap and Small indices have gained by 0.8% and 1% each.
The market breadth on the BSE is firm with 1,610 shares advancing and 868 shares declining.