By RTT News, September 10, 2013, 07:22:00 AM EDT
(RTTNews.com) - Strong buying by foreign funds on the back of easing concerns about a potential Western-led strike in Syria and provisional data showing a double digit rise in India's merchandise exports for August lifted the benchmark indexes Sensex and the Nifty to more than six-week highs. Telecom and auto stocks led the rally.
India's trade deficit narrowed to $10.9 billion in August, helped by a double digit rise in merchandise exports and a sharp reduction in gold imports, government data showed.
The benchmark BSE Sensex rose above the psychological 20,000 mark in late trade before paring some gains to end up 727 points or 3.8 percent at 19,997. The broader Nifty index jumped 216 points or 3.81 percent to 5,897. The partially convertible rupee was last trading higher at 64.33 against the dollar, helped by renewed capital inflows.
Auto stocks led the rally, with Tata Motors climbing 9.8 percent to a 52-week high after the company launched three new passenger vehicles in the Indonesian market and its U.K. subsidiary Jaguar Land Rover reported record sales in August. Bajaj Auto, Maruti Suzuki, Mahindra & Mahindra and Hero MotoCorp rose 4-7 percent.
Telecom giant Bharti Airtel soared 8 percent and rival Idea Cellular jumped 6 percent after telecom regulator TRAI recommended sharp cuts in reserve price for spectrum auction and proposed spectrum trading with conditions.
Construction & engineering giant Larsen & Toubro climbed 7 percent, metal stocks like Coal India and Sesa Goa added 4-6 percent, mortgage lender HDFC and cigarette maker ITC rallied about 6 percent each, software services exporter Infosys advanced 4.3 percent private sector lender HDFC closed 3.5 percent higher.
Cairn India fell 1.3 percent after Brent crude futures fell to a one-week low below $113 a barrel. Fears about Syria abated after U.S. President Barack Obama called Russia's proposal to have Syria surrender all of its chemical weapons as "potentially positive" development, even as he voiced skepticism about the Assad regime's intentions.
Global cues were supportive, with stocks rising sharply across Asia and Europe, buoyed by upbeat Chinese factory output and retail sales data and amid easing fears about Syria.
Data from the National Bureau of Statistics revealed that China's industrial production increased 10.4 percent year-over-year in August compared with forecasts for 9.9 percent growth. This was the strongest growth recorded in 17 months.
Retail sales rose 13.4 percent annually during the month, faster than the 13.3 percent increase expected by economists, while fixed asset investment rose 20.3 percent in the January-August period, a tad higher than the 20.2 percent increase forecast by economists.
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