Sensex gains 137 points

The BSE Sensex rose 137 points on Tuesday, as lenders recovered from recent steep falls after the Reserve Bano if India (RBI)'s move to purchase bonds eased concerns about the value of the sector's debt holdings.

The markets were also buoyed by an official's statement that government will finance its current account deficit fully in the financial year ending March without drawing down on its reserves, and will also contain the fiscal deficit at 4.8 per cent of GDP. Gains also tracked a rise in global shares as investors tended to view the US shutdown as temporary.

The Sensex rose 0.71 per cent, or 137.38 points, to end at 19,517.15. The broader Nifty advanced 0.78 per cent, or 44.75 points, to end at 5,780.05.
 

Banking stocks rose after the RBI said it would buy up to Rs 10,000 crore of bonds via open market operations on October 7, sparking gains in bonds.

Lenders are the biggest holders of government bonds and the RBI's rate hike last month had raised concerns about the holdings.

ICICI Bank and HDFC Bank gained 3.1 per cent each.

Among state-owned banks, State Bank of India rose 1.8 per cent, while Bank of India ended 5.3 per cent higher.

Tata Communications surged 7.3 per cent after South Africa's Vodacom Group said on Monday it was in exclusive talks to buy Tata's unlisted local unit, Neotel, in a potential $590 million deal.

Maruti Suzuki gained 1.6 per cent on higher-than-expected sales in September.

TVS Motor Company surged nine per cent after the company said its sales in September rose 16 per cent to 197,409 units.

Financial Technologies (India) gained 2.3 per cent on short-covering in the futures market ahead of its exclusion from the equity derivatives segment.

However among stocks that fell, Hindustan Unilever fell 1.3 per cent after its parent company Unilever warned that a slowdown in its emerging markets accelerated in the third quarter.

Apollo Tyres ended 1.8 per cent lower after falling as much as 8.9 per cent on worries about possible high debt after Cooper Tire and Rubber Co shareholders approved the US company's $2.5 billion sale to the Indian firm.