Indian shares rallied on Tuesday, shrugging off mixed Asian cues as the rupee rebounded and euro area finance ministers agreed on the terms of a bailout for Spain's troubled banks. Asian markets ended on a mixed note today as disappointing Chinese trade figures coming on the heels of falling inflation numbers exacerbated worries about flagging global economic growth.
However, European stocks rose for the first time in five days and peripheral euro-zone bond yields drifted lower, helping boost sentiment as the session progressed.
The major European averages such as the German DAX and France's CAC 40 were up over a percent each after the euro zone finance ministers agreed to grant Spain an extra year until 2014 to reach its deficit reduction targets and set the parameters of an aid package for the country's troubled lenders. But they made no apparent progress on how to tackle rising Spanish and Italian bond yields.
The euro turned positive against the dollar after data showed U.K. manufacturing logged an unexpected growth of 1 percent in May.
Closer home, the benchmark 30-share Sensex hit a 14-week high to end up 226 points or 1.30 percent at 17,618, while the broader Nifty index climbed 70 points or 1.33 percent to 5,345. Second-line stocks posted relatively modest gains, with the BSE mid-cap and small-cap indexes rising 1.1 percent and 0.8 percent, respectively.
Tata Motors, India's largest automaker, climbed 2.6 percent after Standard & Poor's Ratings Services raised its long-term corporate credit rating on the company to 'BB' from 'BB-' with a positive outlook.
Maruti Suzuki jumped 2.7 percent despite industry body SIAM cutting its forecast for car sales growth this year. Utility vehicles manufacturer Mahindra & Mahindra rose 0.6 percent, while to-wheeler manufacturers Bajaj Auto and Hero MotoCorp ended up 1.3 percent and 1.7 percent, respectively.
Infosys rose 0.9 percent and TCS added 0.3 percent ahead of their Q1 results on Thursday, while Wipro drifted down 0.4 percent.
HDFC, which will unveil its first-quarter results tomorrow, added a percent, while HDFC Bank gained 1.9 percent before its earnings results on Friday. SBI rose 0.7 percent and ICICI Bank gained 1.4 percent.
Engineering & construction giant Larsen & Toubro gained 2.1 percent after it bought Malaysia-based electrical equipment maker Henikwon Corporation for an undisclosed amount.
Alstom Projects rose 1.6 percent and Steel Strips Wheels climbed 5 percent on winning new orders. Essar Oil rose 1.3 percent despite Gujarat government attaching its accounts to recover sales tax dues. OnMobile Global soared 9 percent after its managing director and chief executive, Arvind Rao, resigned from the company on allegations of financial irregularities.
Kingfisher Airlines slipped 0.7 percent after a section of its pilots went on a strike protesting non-payment of salary and other dues, forcing cancellation of flights. Future Capital Holdings slid 0.6 percent as the company sold its entire stake in wholly-owned subsidiary, Myra Mall Management Company for Rs.98 crore.
by RTT Staff Writer
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