Indian Shares Rally On Global Cues

(RTTNews) - Positive global cues coupled with a firmer rupee, encouraging current account data and optimism about the progressive nature of the new bankruptcy code, introduced in Lok Sabha by Finance Minister Arun Jaitley on Monday, helped lift Indian shares to nearly three-week highs on Wednesday.

Global cues were positive as oil prices stabilized and a positive reading on U.S. growth and consumer spending buoyed optimism about the recovery in the world's largest economy.

The Indian rupee traded higher at 66.21 per dollar in the afternoon, extending gains for the seventh consecutive session in the absence of foreign selling pressure.

The Insolvency and Bankruptcy Code has been referred to a Joint Committee of Parliament having representation from both the houses of Parliament for further scrutiny, effectively pushing its enactment at least to the Budget session beginning in February.

The benchmark BSE Sensex jumped 259.65 points or 1.01 percent to close at 25,850.30 while the broader Nifty index closed up 79.85 points or 1.03 percent at 7,865.95.

Among the prominent gainers, BHEL, Vedanta, Hindalco and GAIL climbed 4-6 percent. Sun Pharmaceutical Industries jumped 3.8 percent, rising for the second day after losing around 7 percent on Monday following the U.S. FDA warning letter over its Halol facility in Gujarat.

Dr. Lal PathLabs shares closed at Rs. 834.50 on the first day of listing, up over 50 percent from the initial public offering price of Rs. 550 a share.

Alkem Laboratories closed at Rs. 1,381, up 31 percent from the IPO price of Rs. 1,050 a share.

Natco Pharma advanced 1.5 percent after settling a long-running patent dispute with US-based Celgene Corp over its flagship blood-cancer drug Revlimid.

Tata Steel shares rallied 3 percent. The company said it is in talks to sell its struggling British-based unit to investment firm Greybull Capital.

Essar Oil soared 6 percent after market regulator SEBI gave its go-ahead to BSE to accept nearly 2 crore shares tendered by state-run insurer LIC for the promoters' buyout offer.

Suven Life Sciences added nearly 4 percent after securing seven product patents.