BSE Sensex gains on steps to stop rupee rout,HDFC Bank,Sun Pharma shares soar

* Top Stocks: Quantity

* Best Performing Mutual Funds

The 30-share index started the day’s trade on a firm note at 19,446.30 and rose further to close 114.71 points,or 0.59 per cent higher at 19,439.48. Sensex had lost 171.05 points yesterday.

Profit booking at yesterday’s low levels also boosted shares on the index,they added.

The market remained bullish ahead of a meeting to be chaired by Prime Minister Manmohan Singh,where some major decisions to boost the manufacturing sector were expected.

Similarly,the wide-based National Stock Exchange index Nifty gained 47.45 points,or 0.82 per cent,to close at 5,859.00. Also,SX40 index,the flagship index of MCX-SX,closed 62.75 points,or 0.54 per cent higher at 11,598.19.

Also,a firming trend in the global markets on cheerful beginning of earning quarter in the US further supported the market sentiment,brokers said.

Out of the 30 BSE index components,22 stocks ended with gains led by Sun Pharma rising 3.57 per cent to Rs 1,079.95.

Market heavyweights Reliance Industries and Infosys rose by 0.58 per cent to Rs 873.35 and 0.97 per cent to Rs 2,495.70.

After falling heavily yesterday,banking stocks recovered sharply as rupee rose to 60.12 against the dollar intraday today. Among the major gainers,HDFC Bank rose by 1.27 per cent to Rs 668.75 and ICICI Bank by 0.66 per cent to Rs 1,034.70.

Sectorally,the consumer durable sector index gained the most by 1.93 per cent to 6,276.96,followed by power index by 1.86 per cent to 1,644.48.

Indian shares gain as regulators step in to curb rupee slide

(Reuters) Indian shares rose on Tuesday as a recovery in the rupee from a record low in the previous session boosted blue-chips such as HDFC Bank,highlighting how the fortunes of the currency have become a determining factor across markets

*Stocks: Top Gainers/Top Losers

* Stocks: Top Value

Late on Monday,the Reserve Bank of India banned banks from proprietary trading in domestic currency futures and options,while the Securities and Exchange Board of India (SEBI) doubled the margin requirement on domestic dollar-rupee forward trade.

That sent the rupee higher,easing some of concerns that a falling currency would erode foreign investors’ holdings,sparking more outflows at a time when overseas funds are already exiting from emerging markets due to the potential early end to the U.S. monetary stimulus.

Investors are now gearing up for a new earnings season that kicks off on Friday with Infosys Ltd results.

Aggregate net profit for India’s benchmark BSE index constituents is expected to grow by 1.5 percent and revenue by 3.85 percent for the April-June quarter,according to a median estimate of 12 brokerages.

“Equity would trail rupee’s movement because inflation,rate cuts,earnings,all depends on it now,” said Vivek Mahajan,head of research at Aditya Birla Money.

The benchmark BSE index rose 0.59 percent,or 114.71 points,to end at 19,439.48,turning positive for 2013.

The broader NSE index rose 0.82 percent,or 47.45 points,to end at 5,859.00,closing above its 200-day moving average.

Recent underperformers gained. HDFC Bank rose 1.5 percent while Reliance Industries Ltd rose 0.9 percent.

Investors also parked money in pharmaceutical and consumer shares which are traditionally considered defensive,amid rupee volatility and uncertainty around pending earnings season.

Sun Pharmaceutical Industries Ltd rose 3.6 percent while Dr.Reddy’s Laboratories Ltd ended 1.6 percent higher. Among consumer stocks,United Spirits Ltd rose 3.3 percent while ITC Ltd ended 0.2 percent higher,marking its fifth day of gains.

Titan Industries Ltd gained 2.5 percent after Goldman Sachs upgraded the stock to “buy” from “neutral”,saying the jewellery retailer is “sufficiently” capitalised to buy gold without too much leverage,while its growth is being supported by additional stores and “resilient” wedding and discretionary demand.

Infosys shares rose 1.2 percent ahead of April-June earnings.

Shares in Reliance Power Ltd gained 6.3 percent after investors sharply pared short positions in July futures. However,among stocks that fell,Reliance Communications Ltd shares ended 1.9 percent lower on profit-taking after touching a 2-1/2 year high on Monday.