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Sensex Surges Over 700 Pts, Tata Motors Rallies 9%

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The Sensex and the Nifty rose over 3.5 per cent on Tuesday, 10 September, as blue chip shares rose on continued optimism about foreign investor flows amid receding fears of a US led military strike on Syria.

Foreign investors have bought nearly Rs 1800 crore worth of cash shares in the previous two sessions.

Top Sensex gainers: Tata Motors surged 9 per cent, Sesa Goa rose 7.8 per cent, L&T gained  7.4 per cent.

The Bombay Stock Exchange (BSE) benchmark Sensex maintained its rising trend for the fourth straight day on Tuesday, surging on brisk buying by foreign funds led by telecom and auto stocks on firming rupee and a better global trend.

After climbing 1,030 points in the last three sessions, the Sensex spurted by 628 points, or 3.26 per cent, to 19,898.38 at 1420 hrs on heavy capital inflow.

The rupee rose to a two-week high on Tuesday, 10 September, as expectations for a narrower trade deficit and receding concerns about Syria helped the currency continue its recent recovery from record lows hit last month.
 
Read Also: Rupee Hits 2-week High

The rupee rose as much as 1.7 per cent on the day, and looked set for a fourth consecutive session of gains after former International Monetary Fund Chief Economist Raghuram Rajan took the helm of the central bank last Wednesday and quickly unveiled a spate of measures to support the currency and open up markets.
 
Hopes that Rajan will unveil more market-friendly measures were further boosted after the Reserve Bank of India late on Friday made it easier for it for non-residents to buy shares of listed companies.
 
The government is also set to announce more steps over the next few days to curb non-essential imports, with expectations growing for a hike in subsidised diesel prices that would ease concerns about the government's finances.
 
Brokers said foreign investors remained net buyers in fundamentally strong stocks as the rupee continued its rising streak against the dollar.

They said telecom stocks climbed after the regulator Telecom Regulatory Authority of India (TRAI) suggested lowering prices for auctioning airwaves and auto stocks rose on higher car and scooter sales in August.

The broad-based National Stock Exchange index Nifty jumped up by 186.20 points, or 3.28 per cent, to 5,866.60 at the same time.

The rally was backed by stocks of Bharti Airtel, Tata Motors, Infosys, Bajaj Auto, Maruti Suzuki, Reliance Industries, ONGC, State Bank of India, ICICI Bank, Hero MotoCorp and ITC.

The market sentiment remained bullish since the RBI announced a slew of measures last week to attract capital inflows, boost economic growth and stem the rupee's fall. Gains were also spurred by the Rs 1,800 crore worth of buying in Indian cash shares by foreign investors in the previous two sessions.
 
Besides, a firming trend on the other Asian bourses buoyed by a string of upbeat global economic data as well as signs that a US-led strike on Syria could be averted also influenced the sentiments here.
 
(Agencies)