India's key share index rose to a nine-month closing high on Tuesday, but remained just shy of the psychologically important 6,000 mark. The 30-issue Mumbai Sensex rose 0.55 percent to 5,996.70 points after provisionally ending at 6,001.31 points. "The mood is upbeat and traders are betting on more inflows ahead of the year-end. There is good demand for banks and technology issues," said Vipul Sanghvi, senior manager of institutional sales at Fortis Securities.
Overseas investors have pumped a net $407 million into Indian shares so far in November, after net inflows of $875.9 million in October.
The rise in stocks on Tuesday was led by auto companies, as traders cheered a cut in retail petrol prices on Monday.
Bajaj Auto Ltd, India's second-biggest motorcycle maker, rose 2.7 percent and Maruti Udyog Ltd, the top car maker, jumped 2.1 percent.
The rupee ended at a new five-month closing high, helped by robust capital and trade inflows that had bunched up over a four-day weekend, but it was pulled off a session peak by central bank intervention.
The rupee closed at 45.0675/0750 per dollar, nearly 0.2 percent stronger than Thursday's 45.15/16 but off an intra-day peak of 44.99.
Dollar inflows from portfolio investors and exporters were strong on Tuesday as trade resumed after holidays on Friday and Monday for the Hindu and Muslim festivals of Diwali and Eid.
The rupee has now appreciated 3.1 percent from the year's low of 46.4500/4550 recorded on July 29, helped by a strong revival in foreign fund investments into Asia's fourth-largest economy, after a lull that followed a change of government in May.
Bonds were on a strong footing after the government cut petrol prices, but concerns over tight money market liquidity and a likely stock sale worth 50 billion rupees later this month kept appetite somewhat subdued.
The benchmark 10-year bond yield eased to 7.1397 percent from Saturday's 7.1940 percent.
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