BSE Sensex hits 20000, Nifty tests 5900; Tata Motors up 10%

4:00 pm Update: Gold tracked oil lower after Russia offered to work with Damascus to put Syria's chemical weapons under international control, while firmer equities also dented the precious metal's appeal, reports Reuters.

Bullion, which has slipped nearly 18 percent this year, is also under pressure from expectations the US Federal Reserve will opt to taper its monetary stimulus programme after the Fed's Open Market Committee (FOMC) meeting on September 17-18.

Gold fell USD 8.74 an ounce to USD 1,378.20 by 0636 GMT, well below an all-time high around USD 1,920 struck in September 2011.

The Fed's stimulus, known as quantitative easing or QE, has been a key driver in gold's rally in recent years. 3:40 pm Market closing: The bulls go on a rampage.

The market surges to a 7-week high, bolstered by a sharp strengthening of the rupee and a decline in August trade deficit. The Sensex crosses 20,000 with a 700 point rally and ended 19997.10 up 727.04 points or 3.77 percent.

The Nifty adds 216.35 points or 3.81 percent to close at 5896.75. About 1491 shares have advanced, 817 shares declined, and 147 shares are unchanged. Tata Motors , Bharti Airtel , Hero Motocorp , L&T and Sesa Goa are top gainers in the Sensex. On the losing side are Dr Reddys' Lab, SBI and TCS .

3:25 pm Buzzer: Rice stocks are on fire Tuesday as Russia lifted its eight-month-old ban on import of rice, peanuts from India.

This move will make these companies consider the prospect of exporting rice to Russia at a time when India is looking at boosting exports. The Russian Federation had imposed the ban due to the presence of khapra beetles pest in rice and aflatoxin contamination of peanuts. Kohinoor Foods is locked at 10 percent upper circuit at 14:43 hours IST.

There were pending buy orders of 25,540 shares, with no sellers available. LT Foods rose 0.92 percent to Rs 71 while KRBL declined 0.8 percent to Rs 24.20.

The market's good move continued as investors seemed very bullish on equities today. The strength in rupee pulled market higher.

The Sensex is up 714.87 points or 3.71 percent at 19984.93. The Nifty adds 216.60 points or 3.81 percent at 5897.00. About 1440 shares have advanced, 747 shares declined, and 143 shares are unchanged.

The Sensex has hit 20,000 for first time since July 25. Three stocks are advancing for every stock declining on NSE and all indices are trading in the green. The Nifty has gained 510 points in last four trading sessions. Bank Nifty has pocketed 1591 points in last four trading sessions.

Out of all, 23 Nifty stocks gained more than 10 percent in last four sessions. Meanwhile, trade deficit shrinks in August. Trade deficit in August dropped to USD 10.91 billion from USD 12.27 billion in previous month. Imports declined to USD 37.05 billion from USD 38.10 billion while exports increased to USD 26.14 billion from USD 25.83 billion during the same period.

Gold imports fell to USD 0.65 billion in August from USD 2.20 billion in July. Barclays says that the gold imports for the year should be lower by USD 10 billion.

2:00 pm Update: ONGC and Oil India are unlikely to buy an 11 percent stake being shed by Malaysian state firm Petronas in Venezuela's Petrocarabobo petroleum project, sources close to the companies said, reports Reuters.

ONGC may not want to up its share as it is already seeking to raise debt to fund recent acquisitions in Mozambique, one of the sources said. Another source said Oil and Natural Gas Corp is studying the possibility of buying Petronas' stake.

1:45 pm Sandeep Shenoy of Anand Rathi Financial Services sees the market hovering in the broad range of 5,600-6,000 for the next two-three months given the lack of positive cues. "We are not seeing any positive triggers for the market from short to medium-term. We will have to wait for Q2 results, which are 45 days away.

From hereon, we could be seeing sideways movement," he told CNBC-TV18 in an interview. Shenoy is hopeful that the current rally seen in the market may take it to higher levels, but adds that the market is still not out of woods . He advices to trade cautiously.

Sandeep Shenoy of Anand Rathi Financial Services sees the market hovering in the broad range of 5,600 - 6,000 for the next two-three months given the lack of positive cues. "We are not seeing any positive triggers for the market from short to medium-term. We will have to wait for Q2 results, which are 45 days away. From hereon, we could be seeing sideways movement," he told CNBC-TV18 in an interview. Shenoy is hopeful that the current rally seen in the market may take it to higher levels, but adds that the market is still not out of woods . He advices to trade cautiously.

Sandeep Shenoy of Anand Rathi Financial Services sees the market hovering in the broad range of 5,600 - 6,000 for the next two-three months given the lack of positive cues. "We are not seeing any positive triggers for the market from short to medium-term.

We will have to wait for Q2 results, which are 45 days away. From hereon, we could be seeing sideways movement," he told CNBC-TV18 in an interview. Shenoy is hopeful that the current rally seen in the market may take it to higher levels, but adds that the market is still not out of woods . He advices to trade cautiously.

1:30 pm Buzzer: Larsen and Toubro (L&T) shares surged 7 percent in noon trade Tuesday, continuing its upward journey for the fourth consecutive session. Goldman Sachs added the stock to its conviction buy list. The brokerage house has set a target price on the stock at Rs 906 apiece on the back of increasingly attractive valuation and risk-reward, visible growth, balance sheet strength and good execution track-record.

Bharti Airtel and Idea Cellular rally about 4 percent on TRAI recommendations of a 40-60 per cent cut in spectrum reserve prices, flat spectrum charges and spectrum trading. Macquarie says that the new recommendation could cut regulatory burden by 40-50 percent. Indraprastha Gas rose 2 percent after CNG prices were hiked by Rs 3.70-4.20 per kg in Delhi on the back of the sharp depreciation in the rupee.

This is the second hike in 2.5 months. Hindustan Zinc gained 3 percent on a media report that Vedanta may sweeten the offer for government's stake in the company by 10 percent..

The Securities Appellate Tribunal has set aside SEBI's order in the Fresenius Kabi case. SAT says that the company is no need to comply with SEBI's conditions. Fresenius Kabi had moved to SAT against SEBI's conditional nod for delisting.

12:40pm Credit Suisse bullish on TCS Technology stocks are witnessing buying interest despite sharp appreciation in rupee. BSE IT index rose 1.25 percent while rupee gained 1.44 percent to 64.30 per dollar.

For IT companies, as per the last quarter numbers, the pickup has been across the board - both big and small companies - and that typically happens when the environment is turning to be a lot more positive for the sector, says Anantha Narayan, Director of Indian Equity Research, Credit Suisse.

From a demand perspective, there is room for a lot of upside, he adds. He sees the Indian IT sector growing at 15-20 percent, going forward. On select stocks, he is bullish on TCS and feels the high valuations can sustain if fundamentals improve. In the madcap IT space, he is positive on MindTree .

However, Som Mittal, President, Nasscom, thinks it is too early to say if full-year guidance of 12-14 percent will be upped. He sees an uptick in demand from both the US and Europe. On the Immigration Bill, he is not sure how fast it will move. It appears that the bill has been put on the back burner, he adds. 12:14pm It is a strong day for the equity market as well as currency, supported by positive global cues. All sectors are supportive today with major aid from FMCG, auto and financials.

The Sensex is up 516 points or 2.68 percent at 19786.06, and the Nifty is up 159.20 points or 2.80 percent at 5839.60. More than two shares advanced for every share declining on the Bombay Stock Exchange. The 30-share BSE benchmark gained more than 1500 points from last Wednesday. Ratnesh Kumar, MD and CEO, Standard Chartered Securities believes that worst for India is over atleast in certain aspects like the current account deficit (CAD).

According to him, the market is on steadier ground after the better-than-expected July CAD figure and is likely to remain so until the September 17 Fed meet. In an interview to CNBC-TV18 he says increase in investments will act as an antibiotic for the market in the long-term. Meanwhile, the rupee gained 92 paise to 64.32 against the US dollar. The currency appreciated by 350 paise in four sessions. BSE Capital Goods Index gained the most among sectoral indices, rising 5.5 percent, supported by L&T with 7 percent gains. Tata Motors is the biggest gainer with a 8 percent upmove after its UK subsidiary Jaguar Land Rover (JLR) reported record sales performance in August.

HDFC rallied over 6 percent while ITC , Infosys , HDFC Bank , HUL , Bharti, M&M, SBI and Maruti gained 2-4 percent.

11:50 am Market outlook: Ratnesh Kumar, MD and CEO, Standard Chartered Securities believes that worst for India is over atleast in certain aspects like the current account deficit (CAD). According to him, the market is on steadier ground after the better-than-expected July CAD figure and is likely to remain so until the September 17 Fed meet. (Read More) In an interview to CNBC-TV18 he says increase in investments will act as an antibiotic for the market in the long-term. "The Cabinet Committee on Infrastructure (CCI) has been approving some projects and the market would need to see more of that along with some of those investments actually translating into dollars on the ground," he adds.

11:30 am Buzzer: Shares of Tata Motors soared more than 8 percent to touch a record high of Rs 344.7 in noon trade Tuesday after its UK subsidiary Jaguar Land Rover (JLR) reported record sales performance in August. The luxurious car maker sold 27,852 units in August, a growth of 28 percent over a year ago period on the back of strong retail volumes in the key geographies of USA and UK. Jaguar's sales jumped 92 percent year-on-year at 5405 units, driven by strong demand for all XF derivatives (XF Sedan & Sportsbrake up 91 percent while XJ also delivered strong growth of 50 percent).

The market has extended gains on the back of a stronger rupee and on possible buying by long-only funds. Global cues are also supportive. The Sensex jumps 534.04 points or 2.77 percent at 19804.10, and the Nifty is up 162.95 points or 2.87 percemt at 5843.35. About 1263 shares have advanced, 519 shares declined, and 114 shares are unchanged. Tata Motors is the top gainer on the Nifty, up 8 percent after Jaguar Landrover's august sales rise 28 percent year on year to 27852 units. Jan-august sales are up 16 percent.

HDFC, L&T, ITC and Bharti Airtel are other top gainers in the Sensex. Meanwhile on the losing side are Dr Reddys' Lab and BHEL . The rupee rose to a 2-week high against the US dollar today tracking the euro and most Asian currencies and government bond prices are in step with the higher rupee ahead of the august trade data.

Asian markets extended gains as fears of an imminent US attack on Syria eased and China data remained supportive. The Nikkei was trading at a one month high while the Kospi was at a 3-month high. In other asset classes, crude oil futures fell from more than 2 year highs seen last week as Syran fears eased. Gold was below USD1400. The euro was firm against the dollar today on improved risk appetite while the yen was marginally higher.

Tata Motors is the top gainer in the Nifty, up 7.6 percent after its UK subsidiary Jaguar Land Rover's August sales rose 28 percent to 27,852. Total sales of its subsidiary for the period of January-August sales are now up 16 percent.  L&T gained 5 percent after Goldman Sachs added the stock to its conviction buy list with a price target of Rs 906. The reasons are increasingly attractive valuation and risk-reward, visible growth, balance sheet strength and good execution track-record of the company.

Hindustan Zinc rallied over 3 percent as a media report indicates that Vedanta may sweeten offer for government's stake in the company by 10 percent. The stock gained more than 25 percent in the past one month. The Sensex is up 531.79 points or 2.76 percent at 19801.85, and the Nifty is up 162.60 points or 2.86 percent at 5843. 10:30am Gainers Housing finance major HDFC and commercial vehicle maker Tata Motors advanced 6 percent and 7 percent, respectively.

FMCG stocks ITC and Hindustan Unilever gained 2-4 percent while capital goods major L&T rose 4 percent. Country's largest lenders State Bank of India , ICICI Bank and HDFC Bank spiked 2 percent each. IT stocks too gained despite sharp appreciation in rupee from last Wednesday. Infosys , TCS and Wipro soared 1-2 percent. However, BHEL and Dr Reddys Labs were only losers in the Sensex, down 1.8 percenet and 0.4 percent, respectively. Also Read - Why Indian exports need more than a cheap rupee

10:15am The market extended its rally in morning trade Tuesday on positive global cues, aided by telecom, capital goods and financials. The Sensex is up 494.02 points or 2.56 percent at 19764.08, and the Nifty is up 154.95 points or 2.73 percent at 5835.35. Three shares advanced for every share declining on the Bombay Stock Exchange.

Rakesh Arora of Macquarie says that the market appears to be tightly anchored to RBI's September 20 midquarter review, like it was to the Union Budget earlier this year, but is likely to be disappointed. "Valuations look tempting, but the macro environment looks fraught with headwinds. We advise caution," he adds. Meanwhile, the rupee gained 108 paise to 64.16 against the US dollar, continuing appreciation further. It gained 350 paise in four consecutive sessions.

TRAI's recommendations to cut spectrum reserve prices pushed telecom stocks higher today. Bharti Airtel surged 5.6 percent and Idea Cellular jumped 4.5 percent. Globally, Asian markets too extended their gains. Nikkei rose 1.3 percent while Shanghai, Hang Seng, Straits Times and Kospi gained 0.2-0.6 percent as a non-military solution to the Syrian crisis emerged. Investors are cautious ahead of China data - industrial output, retail sales and fixed asset investment data.

9:50 am Buzzer: Telecom stocks rallied quite smartly in after Telecom Regulatory Authority of India (TRAI) recommended steep cuts in reserve prices for the next round of specturm auctions. At 9:40 hours IST, shares of country's largest telecom operator Bharti Airtel gained more than 4 percent to Rs 327.05 followed by Idea Cellular with 4.17 percent gains at Rs 164.70 on the BSE.

MTNL rose 2.33 percent while Reliance Communications and Tata Teleservices advanced over 1 percent. The telecom regulator said no spectrum would be reserved for existing players when their licences expire and suggested that airwaves can be traded.

TRAI slashed the combined spectrum auction reserve price in the premium 900 MHz band in the circles of Delhi, Mumbai and Kolkata by about 79 percent to Rs 650 crore per MHz against Rs 3,074.18 crore per MHz earlier.

9:35 am FII view: Rakesh Arora of Macquarie says that the market appears to be too tightly anchored to RBI's September 20 midquarter review, like it was to the Union Budget earlier this year. However, it is likely to be disappointed. ''Valuations look tempting, but the macro environment looks fraught with headwinds. We advise caution.

Buy quality large caps on dips only. Our top picks are L&T, HDFC Bank , Reliance Industries , Coal India and M&M with a 3-year view which can give 100 percent returns,'' he says. 9:20 am Movers and losers: Banking stocks have held the market higher. Bankex is up 3 percent.

HDFC, Bharti Airtel, Tata Motors , L&T and SBI are top gainers in the Sensex. BHEL , ONGC , Dr Reddys'Lab are losers in the Sensex.

After an extended weekend, the market seems to be in a good mood today. The Sensex surges 245.45 points or 1.27 percent at 19515.51, and the Nifty is up 58.10 points or 1.02 percent at 5738.50. About 294 shares have advanced, 56 shares declined, and 22 shares are unchanged. The Indian rupee opened higher by 85 paise at 64.39 per dollar versus 65.24 Friday. Mohan Shenoi, Kotak Mahindra Bank said, "EM currencies have seen gains against the dollar. After a long weekend rupee is also expected to continue its recent strength.

The currency may breach 65/USD and trade in a range of 64.20-65/USD. The euro held steady around a more than one-week high in early Asian trade on Tuesday, as risk appetite ticked up following Russia's non-military solution to the Syria crisis.

In the global front, US markets gained 1 percent across the board on Monday led by upbeat Chinese exports data with the Dow recording its best day in two months and closing above the 15,000 mark. Earlier, European markets closed lower weighed down by uncertainty over Syria and fears of Fed tapering. Asian markets were trading higher in early trade today morning. In the currency space, the euro held steady around a more than one-week high in early Asian trade on Tuesday, as risk appetite ticked up following Russia's non-military solution to the Syria crisis.

In commodities, Brent prices fell to 1-week lows of USD112/barrel as concerns of an imminent strike on Syria eased. Nymex stood at USD 108/barrel levels. From precious metals space, gold prices trend lower, surrendering some of the gains made in the previous session, on market expectations that the Federal Reserve may taper its monetary stimulus.