Sensex edges up; weaker rupee boosts exporters

The BSE Sensex and Nifty edged up on Thursday as exporters such as Infosys Ltd rallied after the rupee fell to a nine-month low, though the weaker local currency hit other blue-chips such as Tata Motors by tempering hopes of interest rate cuts.

Meanwhile, a television news channel reported that Kotak Mahindra Bank may buy ING Vysya Bank, sending both stocks to their record highs. Kotak said no decision had been made in relation to any merger.

Broader gains were capped by worries that foreign investors may slow purchases or lock in some profits after local shares rose to record highs on Tuesday.

Foreign institutional investors bought shares worth $11.59 million on Wednesday and $2.4 million on Tuesday. They have bought a net $15.47 billion worth of shares in 2014, according to regulatory data.

Investors are waiting for the winter session of Parliament scheduled to begin next week and the Reserve Bank of India (RBI)'s policy review on December 2, to decide their course of action.

"There is event risk of winter session and RBI review. Foreign investors are also in a wait mode before these events and are likely to pare some positions," said Vinod Nair, head of fundamental research at Geojit BNP Paribas Financial Services Ltd.

The BSE Sensex rose 0.12 per cent to 28,067, 0.8 per cent away from its record high hit on Tuesday.

The Nifty gained 0.23 per cent to 8,402, above the psychologically important 8,400 level, and 0.64 per cent away from its all-time high of 8,455.6.

Exporters led gains. Infosys rose 1.3 per cent, while Tata Consultancy Services ended up 1.2 per cent.

Tech Mahindra rose three per cent, HCL Technologies gained 1.1 per cent and Wipro advanced 1.2 per cent.

Among drug exporters, Cipla rose 3.2 per cent and Lupin gained 1.3 per cent.

Kotak Mahindra ended 7.4 per cent higher after marking a record high of Rs 1,163 earlier in the day, while ING Vysya soared 7.8 per cent after marking an all-time high of Rs 865.

Among losers, blue-chips, including rate-sensitive stocks, such as Tata Motors declined 0.9 per cent as investors tempered rate-cut hopes after the rupee fell to its weakest in nine months.

HDFC Bank ended lower 0.9 per cent, while Axis Bank lost 0.8 per cent.

BSE launches six additional derivative contracts
The BSE announced on Thursday it would make available derivative instruments on six additional securities.

These would span companies in sectors including automobile, real estate and health care. Futures and options contracts would be available on Amtek Auto, Bosch, Engineers India, Indiabulls Housing Finance, Strides Arcolab and Wockhardt, according to a notice on the exchange website.

"The contracts shall be available from November 28," it said.

A derivative contract allows investors to hedge against volatility in the value of his holdings.

The exchange announced it would change the circuit filter for 30 companies. The circuit filter has been revised to 10 per cent for nine securities, to five per cent for 14 and two per cent for seven.

A circuit filter is a limit on the amount by which the price can move on a given day.

The companies which have seen a revision include Godavari Drugs Ltd, Mahalaxmi Seamless Ltd, Kriti Industries India Ltd and Elegant Marbles & Grani Industries Ltd.

"The circuit filters will be changed from Friday," said the notice.