BSE Sensex gains 137 points on CAD, auto sales data

The BSE Sensex rebounded from 3-week lows on Tuesday to end over 137 points higher, as investors cheered lower-than-expected June quarter current account deficit (CAD) number and encouraging September sales for automobile firms.

Brokers said the upsurge in shares was mostly led by the recent losers like stocks of banking, realty, capital goods and auto stocks on heavy purchased at current attractive levels. A higher trend in the Asian region and good opening in Europe further influenced the sentiment.

The 30-share index of the Bombay Stock Exchange, which lost 514 points in the previous two sessions, reversed losses of early trade to end at 19,517.15, a gain of 137.38 points or 0.71 per cent.

Today's rise is the best daily gain for the Sensex since September 19, when it soared by 684.48 points, or 3.43 per cent.

On similar lines, the broad-based National Stock Exchange index Nifty shuttled between 5,786.45 and 5,700.95, before ending 44.70 points higher, or 0.78 per cent at 5,780.05.

The stock markets were also supported by a strengthening rupee that gained 28 paise to trade at 62.34 versus the US dollar, which was under pressure after the US government shut down.

September sales of firms like Maruti, Hero MotoCorp and TVS rose in 12-16 per cent range while that of M&M slipped.

"CAD widened by $21.8 billion in Q1 FY14, below our expectation of $25 billion," said Karvy Analyst Kruti Shah.

The market also took a positive view of the easing retail inflation that eased marginally to 10.75 per cent in August compared to 10.85 per cent in the previous month.

Among Sensex constituents, 16 stock gained led by SBI, ICICI Bank, HDFC Bank, HDFC, Maruti Suzuki, M&M, Tata Motors, Bajaj Auto, BHEL, L&T and Bharti Airtel.

Sectorally, the BSE Realty sector index gained the most by rising 2.69 per cent, followed by BSE Banking index (2.67 per cent), BSE Capital Goods index (1.53 per cent) and BSE Auto index (0.90 per cent).

With inputs from PTI