Asian Economic News

(RTTNews) - Wednesday, reports about robust advance tax payments by top firms and a signal from the central bank that interest rates will not be hiked in the near-term helped the Indian market extend its previous session's rally. Firm Asian cues on the back of larger-than-expected rise in U.S. retail sales in August also boosted sentiment. The BSE Sensex opened stronger at 16,499 and rose further to a high of 16,642 thus far during the day before paring some of its initial gains.

The Sensex is now trading at 16,585, up 131 points or 0.80% and the S&P CNX Nifty is trading at 4,932, up 0.82%.On the BSE, the mid-cap index is moving up 0.83% and the small-cap index is advancing 0.93%. The market breadth is extremely positive, with 1413 gainers versus 728 losers. Sector-wise, metal, realty, banking and auto stocks are leading the rally. Among the top gainers, Tata Steel is up nearly 4%, Sterlite Industries and Jaiprakash Associates are up over 2% each, Reliance Communication is gaining 1.85% and DLF is adding 1.60%.

Mahindra & Mahindra, SBI, ICICI Bank, ACC, Hero Honda Motors, Bharti Airtel, Larsen & Toubro, Tata Power, Hindustan Unilever and ITC are the other prominent gainers. Twenty-eight out of 30 Sensex stocks are currently trading in positive territory. Wipro is down 0.35% and Hindalco is trading flat. National Aluminum is rising 1.54% on reports it plans to set up a nuclear power plant. Tata Power is up around 1% after rating agency Standard & Poor's revised its outlook on the company's corporate credit ratings to positive from stable.

NTPC is up a modest 0.43% on reports it is evaluating an offer to buy a coal mine in South Africa. Elder Pharmaceuticals is gaining over 2% on reports it will sell a minority stake to U.S-based private equity firm TA Associates.Fortis Healthcare is down 0.36% on reports it will raise Rs.1,000 crore via a rights issue by October. LIC Housing Finance is surging up 5.63% on reports it will raise up to $136 million through a share sale to institutional investors.

State-run oil-marketing firms are trading firm after the government issued them Rs.103.06 billion of bonds as partial compensation for selling fuel at subsidized rates. BPCL is rising 0.64%, HPCL is up 0.98% and IOC is adding 1.27%.Dr Reddy's Laboratories is up 1.43% even as reports said that U.S-based drug discovery firm Albany Molecular Research Inc. has filed a patent infringement lawsuit against the company. Mahindra & Mahindra is adding 1.64% after it tied up with Punjab National Bank and UCO Bank for vehicle financing.

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