Advancing for the fourth day, the S&P BSE Sensex on Wednesday spurted by 138 points to a two-week high of 19,367.59 supported by auto, oil & gas, metal and realty stocks despite an uptick in wholesale inflation.
While Tata Motors surged 9.67 per cent to Rs 319.30 after its unit Jaguar Land Rover reported 21 per cent higher sales in July globally, Bajaj Auto shares logged nearly 3 per cent gain after the 50-day long strike at its Chakan plant was called off yesterday.
The Sensex, which had gained 565 points in the past three sessions, rose further by 137.75 points, or 0.72 per cent, to 19,367.59, a level last seen on July 29.
Brokers said the upswing in market was supported by quarterly earnings by Tata Steel whose shares jumped 3.59 per cent. The company reported better-than-expected first quarter results with consolidated net profit surging 90.51 per cent.
Oil & gas shares saw heavy buying on buzz that the government may give a go-ahead to a one-time hike of Rs 2-3 per litre in diesel prices to offset the impact of fall in rupee value.
Rising prices of onions and other vegetables pushed inflation to a five-month high of 5.79 per cent in July even as the government and RBI battled to stabilise the rupee.
A mixed trend in the Asian region and better opening in European markets amid reports that France has emerged from recession further positively influenced investor sentiment.
The broad-based National Stock Exchange index Nifty rose by 43 points, or 0.75 per cent to 5,742.30. Also, SX40 index, the flagship index of MCX-SX, closed at 11,512.15, up 104.01 points, or 0.91 per cent.
In 30-share Sensex pack, 18 stocks gained while 12 ended with losses. Major gainers were Reliance Industries, Tata Consultancy Services, Bajaj Auto, GAIL, Hindalco, ICIC Bank, ONGC, Sterlite Industries and Tata Power.
Sectorally, the auto sector gained the most by rising 3.34 per cent, followed by consumer durables (2.91 per cent), Oil and gas (2.89 per cent) and metal index (2.81 per cent).