Indian shares rose sharply on Tuesday, with realty, banking and IT stocks leading a late-session rally, helped by firm global cues and a stronger rupee on hopes of central bank policy action despite the European Central Bank remaining tight-lipped over its future course of action. Both the benchmarks, Sensex and the broader Nifty, ended up over a percent each near their day's highs.
IT stocks led the rally, with Infosys climbing 2.3 percent after a U.S court dismissed harassment charges filed against the company by a U.S. employee. TCS rose 1.8 percent and Wipro shares ended half a percent higher.
Rate-sensitive realty stocks and banks ended mostly higher after data showed India's annual consumer price inflation slowed slightly in July to 9.86 percent, aided by a fall in prices of cereals, spices and petrol, although vegetable prices remained high. SBI and ICICI Bank rose 1-2 percent, while DLF rallied 3.8 percent.
Larsen & Toubro rose 0.9 percent after the engineering & construction giant said its construction division has received orders over Rs 2,044 crore since July 1.
Among automakers, Maruti Suzuki gained a percent as it reopened its Manesar unit after a month-long lockout. Tata Motors advanced 1.7 percent, extending Friday's rally after it reported strong global sales for July.
Tyre manufacturers saw increased activity on expectations the recent fall in natural rubber prices would boost their profit margins. Apollo Tyres, Ceat and JK Tyre & Industries soared 4-9 percent.
Aluminum major Hindalco fell 0.8 percent as the Odisha State Pollution Control Board ordered the company to shut down its captive power plant near Hirakud in western Odisha after chemicals from its ash pond that damaged standing crops in the adjoining areas.
Steel giant Tata Steel eased 0.7 percent, while shares of Sterlite Industries jumped 4.8 percent. Sesa Goa climbed 3.7 percent after commissioning a new pig iron plant.
Elsewhere, most Asian stocks rose and the European markets were modestly higher in thin trading, as investors continued to pin their hopes on policy action from major central banks to bolster economic growth and help combat the euro zone's debt crisis.
The move by People's Bank of China to ease monetary conditions lowered expectations of further economic stimulus measures from China, but that didn't deter investors from betting on further stimulus measures from the ECB and the Federal Reserve down the road.
Commodities rose and the euro strengthened against the dollar for a second straight session, as investors shrugged off remarks by Germany's central bank against the proposed purchases of government bonds by the European Central Bank.
by RTT Staff Writer
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