By RTT News, October 18, 2013, 07:26:00 AM EDT
(RTTNews.com) - Indian shares rallied on Friday, driven by FII buying in banks, metals, capital goods, realty and oil/gas stocks. The BSE Sensex jumped 467 points or 2.29 percent to 20,883, while the broader Nifty index closed at 6,189, up 144 points or 2.37 percent from its previous close. Both Sensex and Nifty closed at their highest levels in nearly three years.
Sentiment was boosted by positive global cues following encouraging GDP data out of China and speculation that the Federal Reserve may not begin to taper QE until well into 2014. The Asian and European markets traded mostly higher after latest data showed China's economic growth accelerated for the first time in three quarters, keeping the world's second-largest economy on track to achieve the government's growth target of 7.5 percent this year.
The rupee hit a two-month high before erasing initial gains in the wake of reports that the Reserve Bank of India is considering withdrawing the special dollar swap window offered to oil companies. The central bank later clarified that the window remains operational and any tapering, when it occurs, will be done in a calibrated manner.
Axis Bank soared 5.6 percent on brokerage upgrades after posting strong Q2 results. Rivals SBI, Yes Bank, Federal Bank, HDFC Bank, Canara Bank, ICICI Bank and IndusInd Bank gained 3-6 percent.
Metal shares saw broad-based buying after a slew of economic reports out of China indicated the world's second-largest economy is stabilizing. Jindal Steel, Hindustan Zinc, SAIL, JSW Steel and Tata Steel advanced 1-6 percent. Sesa Sterlite soared 6 percent on a brokerage upgrade. Hindalco Industries rose 3.2 percent on bargain hunting following recent sharp gains.
JP Associates rallied 5.1 percent on huge trading volume. Tata Motors added 1.7 percent after launching its Aria crossover in South Africa at the ongoing Johannesburg International Motor Show.
State-run oil companies BPCL and HPCL rose 2-5 percent as crude prices eased and the rupee strengthened, raising expectations their under-recoveries will decrease.
Reliance Industries gained 2.6 percent amid reports that its chairman Mukesh Ambani and BP Plc. chief executive Bob Dudley will meet Prime Minister Manmohan Singh today to seek clarity on gas policy.
Shares of Bharti Airtel rose 1.8 percent. The telecom major announced that it has acquired 100 percent stake in Qualcomm's Wireless Business Services Private Limited, which holds BWA Spectrum in the telecom circles of Mumbai, Delhi, Haryana and Kerala.
NHPC gained half a percent on launching a tax-free bond issue to raise up to Rs 1,000 crore for funding its expansion plans.
PVR jumped 3.2 percent after the multiplex chain operator said it has entered into an agreement for the sale of its Anupam multiplex property located in south Delhi for a total consideration of Rs 52 crore.
Financial Technologies fell 2.5 percent after the Economic Offences Wing of the Mumbai Police arrested Anjani Sinha, former managing director and CEO of its subsidiary NSEL. Blue Star Infotech tumbled over 4 percent on disappointing Q2 results.
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