By RTT News, October 10, 2013, 07:27:00 AM EDT
(RTTNews.com) - The Indian markets erased early losses to end modestly higher on Thursday, bolstered by hopes of a breakthrough in the U.S. fiscal impasse. House Republican leaders are contemplating advancing a short-term debt limit increase to calm financial markets and buy time for negotiations on broader policy measures, media reports said. President Barack Obama signaled that he is ready to accept a short term debt limit deal without policy conditions, providing temporary relief.
The benchmark BSE Sensex rose 24 points or 0.12 percent to 20,273, its highest level in nearly three weeks, with caution ahead of Infosys results and IIP data both due out tomorrow capping gains. The broader Nifty index closed at 6,021, up 14 points or 0.22 percent from its previous close.
The partial rupee was trading weak in the afternoon, taking cues from a stronger dollar in overseas markets, after the minutes of the Federal Reserve's September 17-18 meeting revealed officials struggled with a decision not to taper QE. It was a relatively close call for several members, with some worrying that a delay in tapering asset purchases could undermine the credibility or predictability of monetary policy, the minutes stated.
Auto stocks led the gainers, with Tata Motors climbing 5.6 percent to a record high. Maruti Suzuki rose 1.5 percent and Mahindra & Mahindra added 2 percent. Infosys rose 1.4 percent ahead of its earnings announcement tomorrow, while Reliance Industries ended marginally higher before its results due on Monday.
Tata Steel gained 1.5 percent, a day after reporting an 18 percent jump in production of the saleable metal during the second quarter. Likewise, SesaSterlite rose 1.4 percent after reporting its production numbers.
SBI added 1.6 percent amid reports it may receive government approval to raise up to Rs 8,000 crore of equity capital via a QIP or follow-on issue. Tech Mahindra rallied 3 percent on launching its retail digital enterprise solution ShelfMonitorâ„¢ - Mobile Merchandise Manager.
McNally Bharat Engineering rose 0.7 percent on winning new orders. IL&FS Engg and Construction soared 8.3 percent after its board approved a rights issue. Financial Technologies gained 2.1 percent after its promoter Jignesh Shah and Joseph Massey resigned from the board of MCX Stock Exchange. MCX shares were locked at the 5 percent upper circuit limit.
Garware Wall Ropes shares also jumped 5 percent. The company received board approval to buy back its own shares from open market through stock exchanges at a price not exceeding Rs 65 per share.
JSW Steel fell 1.1 percent despite reporting significantly higher crude steel production at 2.98 million tons during the July-September quarter. NHPC closed 0.3 percent lower after its board approved the prospectus for raising Rs. 1,000 crore via a tax-free bonds issue. Kotak Mahindra Bank declined 1.6 percent after unveiling expansion plans, with a target to double its branch network in three years.
The other Asian markets turned in a mixed performance, while European stocks edged higher in early trading, rising for the first time in four days.
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