Market snaps three-day losing streak

Gains in European shares triggered by hopes of some moves from European leaders towards easing the euro-zone sovereign debt crisis helped Indian shares break a three-day losing streak. The 50-unit S&P CNX Nifty settled above the psychological 5,000 mark, having alternately swung above and below that mark during the second half of the trading session. The barometer index BSE Sensex jumped 242.16 points or 1.47%, up about 320 points from the day's low and off close to 40 points from the day's high.



Euro-zone debt worries had pulled Indian shares lower recently. From a 5-week closing high of 17,165.54 on Thursday, 8 September 2011, the Sensex had tumbled 698.10 points or 4.06% in three trading sessions to 2-week closing low of 16,467.44 on Tuesday, 13 September 2011.

Index heavyweight Reliance Industries (RIL) jumped nearly 2% in a late surge. IT stocks soared on a weak rupee. Realty shares reversed initial losses. FMCG major Hindustan Unilever scaled record high. Most auto shares gained on fresh buying. The market breadth was positive. The breadth had turned negative from positive in early afternoon trade. The breadth was strong at the onset of the trading session.

The market lost ground soon after a positive start as Asian stocks reversed initial gains and as US index futures slumped on fears the Greek government may default on its debts. The market regained positive zone in morning trade. Volatility ruled the roost as key benchmark indices slipped into the red once again after hitting fresh intraday highs in morning trade after news of Moody's downgrade of ratings of two French banks hit the market. The market alternately swung between gains and losses in early afternoon trade.

The market surged to fresh intraday high in afternoon trade as European stock markets shook off early losses triggered by Moody's downgrade of the long-term debt rating of two French banks--Societe Generale and Credit Agricole. Intraday volatility continued as key benchmark indices trimmed gains after hitting fresh intraday highs in mid-afternoon trade. The market surged to fresh intraday high towards the fag end of the trading session.

State-run oil exploration major ONGC's about Rs 11000 crore follow-on public offer (FPO) will suck liquidity from secondary equity markets in the near term. As per market talks, the FPO is likely to open for bidding on 20 September 2011. ONGC filed prospectus with for the FPO with the Securities & Exchange Board of India (Sebi) early this month. The government will sell a 5% stake in ONGC through the offer as a part of its plan to raise Rs 40000 crore through sale of shares in state-run companies in the current financial year through March to fund social-sector programs.

Investors will keenly watch data on second quarter September 2011 corporate advance tax payment due on Thursday, 15 September 2011, which may provide cues on Q2 September 2011 results.

The BSE Sensex jumped 242.16 points or 1.47% to settle at 16,709.60, its highest closing level since 9 September 2011. The index jumped 286.78 points at the day's high of 16,754.22 in late trade. The index fell 80.06 points at the day's low of 16,387.38 in mid-morning trade.

The S&P CNX Nifty was up 71.60 points or 1.45% to settle at 5,012.55, its highest closing level since 9 September 2011. The Nifty hit a high of 5,026.15 and a low of 4,917.40 in intraday trade.

The BSE Mid-Cap index rose 0.21% and the BSE Small-Cap index gained 0.37%. Both these indices underperformed the Sensex.

The market breadth was positive. The breadth had turned negative from positive in early afternoon trade. The breadth was strong at the onset of the trading session. On BSE, 1,520 shares rose and 1,285 shares declined. A total of 109 shares remained unchanged.

BSE clocked turnover of Rs 2591 crore, higher than Rs 2275.76 crore on Tuesday, 13 September 2011.

Among the 30-share Sensex pack, 24 gained while the rest slipped. Jaiprakash Associates jumped 6.39% and was the top gainer from the Sensex pack.

India's largest oil exploration firm by sales ONGC rose 1.01%. The company, early this month, filed prospectus for about Rs 11000-crore follow-on public offer with the Securities and Exchange Board of India.

Shares of three state-run oil marketing firms (PSU OMCs)--BPCL, HPCL and Indian Oil Corporation-- rose by between 1.03% to 1.21% on reports PSU OMCs are looking to increase petrol prices. The government has already freed pricing of petrol. PSU OMCs are also expected to increase the price of aviation turbine fuel (ATF) by about Rs 1,250 a kilolitre, reports added.

Aviation stocks fell on reports state-run oil marketing firms are looking to increase the price of aviation turbine fuel by about Rs 1,250 a kilolitre. SpiceJet (down 0.98%) and Jet Airways (down 2.62%) edged lower. Kingfisher Airlines rose 0.57%. State-run oil marketing companies--Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation--revise aviation turbine fuel (ATF) prices on the 1st and 16th of every month based on the average international crude price in the preceding fortnight.

Aviation turbine fuel (ATF), which is directly linked with crude oil prices, constitutes more than 50% of operating cost for airliners. Crude for October delivery was down 79 cents a barrel, or 0.88% at $89.42 a barrel in Nymex electronic trading during Asia hours on Wednesday, 14 September 2011.

Index heavyweight Reliance Industries (RIL) advanced 1.79% to Rs 825.30 in volatile trade. The stock hit high of Rs 828.70 and low of Rs 804.50. The company has denied inflating costs on its D6 gas field in the Krishna-Godavari (KG) basin. RIL, last week, clarified that audits by three independent experts had found that costs in the KG-D6 field were not inflated and the company had adhered to the PSC (Production Sharing Contract). With regard to Comptroller and Auditor General of India's (CAG) observation that an operator has an incentive to keep costs high, independent auditor Ernst & Young (E&Y) said any increase in capital expenditure is rather detrimental to both the contractor and the government. Consultant Daniel Johnston commented that the appraisal activities, which RIL has carried out in relation to the various discoveries in the KG-D6 block, are consistent with good international petroleum industry practices (GIPIP).

RIL said that the independent reports by E&Y, IPA and Daniel Johnston & Co. Inc. entirely validate RIL's stand in its responses to CAG. The independent nature of these studies conducted by globally reputed consultants has acknowledged RIL's commendable efforts in bringing to stream India's first deep water hydrocarbons production facility in record time, RIL said. The fact that energy major BP has entered into a strategic partnership with RIL in this block, further vindicates RIL's position, RIL said. With its newly established partnership with BP, RIL is confident of unlocking the full potential of KG-D6 and other blocks, thus bringing greater benefit to the nation, RIL said.

RIL issued the statement after CAG said in its final report submitted to the parliament on Thursday, 8 September 2011, that RIL initially estimated capital expenditure of D-1 and D-3 gas discovery at $2.4 billion, which it later revised to $8.8 billion. The CAG report also said that RIL started implementing the revised capex plans even before the government approved them. The report also found that RIL didn't relinquish some least-priority areas in the KG D6 block, which the government could have given to other companies for further exploration.

India's largest FMCG firm by sales Hindustan Unilever jumped 3.34% to Rs 352.60. The stock today, 14 September 2011, hit a record high Rs 354. Recent reports suggested that the company has raised prices of coffee brand Bru in the wake of a sustained rise in cost of raw materials over last several quarters.

Most auto shares gained on fresh buying. India's largest truck maker by sales Tata Motors rose 2.04% to Rs 142.50 on bargain hunting. The stock had hit a 52-week low of Rs 137.65 in intraday trade on Tuesday, 13 September 2011. The company last week said that its group Chief Executive Office and Managing Director Carl-Peter Forster had resigned on Friday 9 September 2011 with immediate effect.

Forster's resignation, according to a Tata Motors' statement, was due to unavoidable personal circumstances. Forster, who earlier headed General Motors Co.'s Europe operations, joined Tata Motors in February 2010. His mandate at Tata Motors included managing its global operations, including Jaguar Land Rover (JLR), which was acquired in June 2008.

"I deeply regret that my personal circumstances make it difficult for me to continue to perform the challenging duties of managing the thriving global activities of the Tata Motors group with its main activities in India and the UK and increasingly in additional overseas markets," Forster said in a statement. Forster will, however, continue to be on the board as a non-executive member. Prakash Telang, Managing Director India Operations and Ralf Speth, Chief Executive Officer, Jaguar Land Rover, will represent their respective operations on the board.

India's largest small car maker by sales Maruti Suzuki India rose 1.7% to Rs 1093.30, rebounding from a 52-week low of Rs 1045 hit in intraday trade today. Maruti Suzuki on Tuesday, 13 September 2011, said it has hired 100 fresh regular workers at its Manesar, Haryana unit in an effort to raise car production and cut the waiting time for one its best-selling models, the Swift. Maruti is adding fresh workers at Manesar as just 104 of the total 950 permanent workers belonging to the so-called Maruti Suzuki Employees Union have signed a "good conduct bond" so far.

Maruti, late last month, halted production at the plant after it asked the 950 regular workers to sign the bond before they could enter the factory. The move came after the company said it discovered "serious and deliberate" quality problems in cars made at the plant. The company is using 1,100 workers, including supervisors, engineers and temporary workers, to continue production at Manesar. It has also deployed some workers from its factory in Gurgaon, also in Haryana, to Manesar. Maruti last week started making the Swift at the Gurgaon plant in addition to Manesar to boost production of the car. Maruti, early this month, began weld operations at a second plant in Manesar, almost a month ahead of schedule, to assist in increasing production at the first factory where it is facing labor problems.

India's largest tractors and utility vehicles maker by sales Mahindra and Mahindra (M&M) rose 1.45%. Mahindra & Mahindra, last week, introduced a new, costlier version of its Bolero SUV. The company expects to sell more than 1 lakh Bolero vehicles this fiscal year through March, compared with 83,112 last year. M&M's auto sales rose 30.38% to 37,684 units in August 2011 over August 2010. The maker of the Xylo, Scorpio and Bolero models exported 1,928 autos, up 18% on year.

India's second largest two wheeler maker by sales Bajaj Auto rose 1.61% to Rs 1626.85. The stock had hit a record peak of Rs 1694.90 in intraday trade on 6 September 2011. The company's total sales rose 16% to a record 3.82 lakh units in August 2011 over August 2010. Motorcycle sales jumped 17% to a record 3.38 lakh units in August 2011 over August 2010.

India's largest two-wheeler maker by sales Hero MotoCorp rose 0.2% to Rs 2210. The stock had scaled a record high of Rs 2,231.70 in intraday trade on Friday, 9 September 2011. The company's sales rose 19% to 5.03 lakh units in August 2011 over August 2010.

Bank stocks were mixed. India's largest private sector bank by net profit ICICI Bank rose 1.51%. India's second largest private sector bank by net profit HDFC Bank gained 2.69%.

India's largest bank by branch network and net profit State Bank of India (SBI) fell 0.47% to Rs 1831.45. The stock hit a 52-week low of Rs 1,812.90 in intraday trade today, 14 September 2011. The government is likely to take a call shortly on infusing capital into SBI. SBI requires Rs 20000 crore to fund its growth plans over the next two financial years.

Bank of Baroda rose 2.46%, after the bank said it will revise interest rates on domestic term deposits from 14 September 2011. The bank has hiked the interest rate on deposits by 25 basis points (bps) from 9% to 9.25% for deposits of 1 year and up to 443 days. For deposits of 444 days, which is indicated as Baroda Utsav Deposit Scheme, the interest rates remain unchanged at 9.35%. The interest rate hike is steeper at 50 bps for deposits above 3 years but up to 5 years.

All the above interest rates are in respect of deposits less than Rs. 1 crore. In respect of deposits of Rs 1 crore and above, the bank has hiked the interest rates by whopping 175 bps to 5% for 7-14 days tenure. Similarly, the rates were hiked by 125 basis points to 5% for deposits of 15-45 days tenure. For deposits of one year and above and up to 3 years, the interest on deposits of Rs 1 crore and above have been hiked by 75 basis points to 9.25%, effective from 14 September 2011.

DLF rose 0.55% extending recent gains triggered by reports that the realty major has decided to sell 17.5 acres land in central Mumbai, which bankers estimate to fetch between Rs 3000--Rs 4000 crore. DLF had bought the land in 2005 from National Textiles Corp. for Rs 702 crore, reports added.

Software stocks rose for the second straight day on a weak rupee. A weak rupee boosts revenue of IT companies in rupee terms as the sector derives a lion's share of revenue from exports. The rupee hit its lowest in nearly two years beyond 48 a dollar in intraday trade today, 14 September 2011.

India's second largest software services exporter Infosys jumped 5.78%. The stock extended Tuesday's gains triggered by reports the company is in talks to acquire a US-based information technology company in a deal which could be worth $500 million to $750 million.

Infosys executive co-chairman S. Gopalakrishnan on 8 September 2011 said clients are unlikely to cut their technology budgets for 2011, though they may end up cutting them for next year. He also warned that clients may hold back spending budgets earmarked for this year. Infosys had earlier said that it is witnessing delays in decision-making by clients.

India's largest software services exporter TCS gained 2.24%. TCS vice chairman S. Ramadorai said in a media interview on Tuesday, 13 September 2011, that demand for outsourcing technology services continues to be good. He, however, added that economic uncertainties in Europe remain the biggest concern for the technology major. Ramadorai said TCS is cautiously optimistic about the demand for outsourcing services as clients remain wary of spending in an uncertain economic environment.

TCS had earlier said that none of its ongoing projects, which are not so urgent in nature, are being cut and it hasn't seen specific delays in decision-making.

India's third largest software services exporter Wipro surged 4.34%, extending Tuesday's 1.25% gain.

Most metal stocks gained on bargain hunting. Hindalco Industries, Sterlite Industries, Hindustan Zinc, JSW Steel, Sail, Tata Steel, Bhushan Steel, and Jindal Steel & Power rose by between 0.16% to 5.09%.

Education shares rallied. Aptech, Everonn Education, Educomp Solutions and Edserv Softsystems rose by between 3.31% to 9.55%.

Retail sector stocks fell on reports the much-awaited multi-brand retail policy allowing foreign direct investment in the sector has been put on hold till the next financial year. Pantaloon Retail (India) (down 7.71%) and Trent (down 1.93%) edged lower. Shoppers Stop rose 1.27%. Reports suggested that no concrete move has yet been taken to take the matter to the Union Cabinet for approval after the recommendation of the Committee of Secretaries (CoS) on 22 July 2011 to allow 51% foreign direct investment (FDI) multi-brand retail. According to reports, a lack of political will is seen as the main reason for the government not taking up the FDI proposal actively.

Anil Dhirubhai Ambani Group shares rose for the second straight day. Reliance Infrastructure, Reliance Communications, Reliance MediaWorks and Reliance Power rose by between 0.66% to 2.8%.

Reliance Capital rose 2.8% after the company said it has received regulatory approval to sell 26% in its insurance business to Japan's Nippon Life Insurance.

India Securities clocked highest volume of 4.8 crore shares on BSE. Birla Power Solutions (2.12 crore shares), Cals Refineries (1.38 crore shares), Resurgence Mines (84.71 lakh shares) and K S Oils (79.34 lakh shares) were the other volume toppers in that order.

India Securities clocked highest turnover of Rs 288.09 crore on BSE. SBI (Rs 158.45 crore), RIL (Rs 70.42 crore), Infosys (Rs 69.69 crore) and Lovable Lingerie (Rs 57.90 crore) were the other turnover toppers in that order.

An India investor survey report prepared by J P Morgan Asset Management-ValueNotes expects benchmark Sensex to trade between 20,000 and 22,000 by end of this year. According to the report, the investment sentiment is affected by concerns such as recession, frequent hikes in interest rates and volatility in the domestic investment environment. Despite witnessing a 4.2-point decline from the last quarter, the 'Retail Investor Confidence Index' ranks the highest at 137.5 points. Retail investors' activity in mutual funds has improved 11% since the last quarter, the survey said. The survey was carried out from 22 July to 4 August 2011.

The survey also shows that investors are becoming cautious as preserving capital emerges as a popular investment strategy among retail investors (40%). However, 40% of investors, in comparison to 57% in March 2011, are expected to turn "somewhat aggressive" about their investment strategy over the coming six months.

An indicator of risk appetite from global financial major Bank of America Merrill Lynch has fallen to levels last seen in March 2009, according to a global fund manager survey from the firm. However, fund managers remain overweight on emerging markets, according to an emerging market fund manager survey from Bank of America Merrill Lynch also issued on Tuesday, 13 September 2011.

The proportion of fund managers who are bullish on emerging markets has risen from 27% last month to 30% now, said the report authored by Michael Hartnett, Kate Moore and Brian Leung. However, if the banking crisis in Europe spirals out of control, emerging market equities will be vulnerable to further sell-offs, the survey report said. Global fund managers have reduced the level of their underweight positions on India, according to the survey.

Finance Minister Pranab Mukherjee on Tuesday, 13 September 2011, said central banks in emerging economies have been forced to raise interest rates repeatedly as they battle high inflation, exposing them to volatile capital flows. "An issue of immediate concern for emerging economies is managing large capital flows," he said. "Large and volatile capital flows to emerging markets can be destabilizing as they lead to high exchange rate volatility and in some cases make it incumbent to maintain high levels of foreign exchange reserves as an insurance against sudden and large-scale flight of international capital."

Economic affairs secretary R. Gopalan on Tuesday, 13 September 2011, said the government will review the cap on overseas corporate borrowings at the end of September 2011. The government currently allows overseas borrowings of up to $30 billion. However, that limit is expected to be reached fast as companies shy away from the high cost of domestic borrowing costs. US and other European countries have near-zero interest rates in a bid to support weak economic growth.

Given the lackluster initial FII response to the government's sharply raising the ceiling of FII investment in long-term corporate bonds issued by the companies in the infrastructure sector in March 2011, the government on Monday, 12 September 2011, further relaxed the norms on FII investment in such bonds. The Finance Ministry said in a statement that FIIs can now invest in long-term infra bonds, subject a ceiling of $5 billion limit, which have an initial maturity of five years or more at the time of issue and residual maturity of one year at the time of first purchase by FIIs. These investments are subject to a lock-in period of one year. FIIs can trade amongst themselves in these bonds but cannot sell to domestic investors during the lock-in period of one year.

FIIs can also now invest, subject to a ceiling of $17 billion, in long-term infra bonds which have an initial maturity of five years or more at the time of issue and residual maturity of three years at the time of first purchase by FIIs. These investments are subject to a lock-in period of three years. During the three-year lock-in period, FIIs can trade amongst themselves but cannot sell to domestic investors. The Securities & Exchange Board of India (Sebi) is expected to issue notifications incorporating these changes in the scheme by 15 October 2011.

Sebi had in early August 2011 allowed Qualified Foreign Investors (QFIs) to subscribe to Mutual Fund Debt Schemes which invest in the infrastructure sector subject to a total overall ceiling of $3 billion within the total ceiling of $25 billion.

On the macro front, inflation as measured by the wholesale price index (WPI) accelerated to 9.78% in August 2011 from the previous month's provisional reading of 9.22%, data released by the government today, 14 September 2011, showed. The inflation reading exceeded market expectations. The government also revised upwards the inflation rate for June 2011 to 9.51% from a provisional 9.44% rise reported earlier.

The Reserve Bank of India (RBI) has said that a change in anti-inflationary monetary stance will be motivated by signs of a sustainable downturn in inflation. The Reserve Bank of India has raised its key policy rate 11 times in the past 18 month to tame high inflation.

Planning Commission deputy chairman Montek Singh Ahluwalia on Monday, 12 September 2011, said at a conference that private funding has to make up half of the infrastructure investment of $1 trillion planned for in the five years during 2012-2017. Prime Minister Manmohan Singh said at the conference that to overcome the fund crunch for infrastructure projects, the government has proposed to set up a $11 billion fund to help finance infrastructure projects. "We have also constituted a high-level committee to suggest measures necessary for financing our ambitious program in infrastructure development," Mr. Singh said.

Industrial production grew a dismal 3.3% in July 2011 from a year earlier, hurt by a sharp fall in capital goods output, government data showed on Monday, 12 September 2011. The reading was sharply lower than the 8.8% industrial output growth recorded in June 2011. July capital goods output shrank 15.2% from a year earlier, compared with a 38% expansion in June. Manufacturing output, which has a 75.5% weight in the index, rose 2.3% year on year in July, compared with a 10% rise in June. Mining output grew 2.8%, compared with a revised 1.1% contraction in June.

Prolonged rainfall in the latter part of the season has helped ease concerns that this year's monsoon might drop below the long-term average after a brief lull in July, when the country usually receives a third of its monsoon rains. The monsoon was 3% above average till 7 September 2011, as per the latest data from Indian Meteorological Department (IMD). Most parts of the country received average to above-average rainfall this year, but the season was marked by both lulls and periods of intense rainfall in western and eastern regions.

While overall rainfall plays a key part in determining farm output, the timing and distribution of rains are also important to ensure a good crop. The unusual pattern of this year's rains may delay harvesting, affecting the yield from key summer-sown crops such as rice, oilseeds, sugarcane and cotton. Rice acreage as of 2 September 2011 was up 12% from last year at 35.75 million hectares.

A good monsoon season can typically boost rural farm incomes and have an impact on the wider economy through increased spending on consumer goods as well as reduced prices of food items. But food prices may not necessarily fall if delayed and excess rains in some regions affect crop yields.

Moody's Investors Services affirmed its Baa3 rating for India's foreign currency government debt and its Ba1 rating for local currency debt in an annual credit analysis released last week. The ratings firm assigned a positive outlook to India's rupee-denominated bonds, saying it will consider a unified Baa3 rating for all bonds if India improves its fiscal position and its commitment to strengthening the domestic market. The outlook for foreign-currency debt is stable.

The report was upbeat about India's ability to weather a global economic downturn. "While it is not immune to an international growth slowdown, the strength of domestic demand and the diversity of the economy provides a buffer against a deceleration in globally exposed sectors," the report said. It noted that India's foreign currency reserves equal four times its foreign debt obligations.

A debt-to-GDP ratio of 71% is cause for concern, as interest on this debt eats up 25% of India's revenues annually. However, "Moody's expects that continued GDP growth and incremental fiscal consolidation efforts will continue to lower the government debt/GDP ratio," the report said.

India's merchandise exports grew 44.2% in August 2011 from a year earlier, totaling $24.3 billion, sharply slowing from the previous month's pace, Commerce Secretary Rahul Khullar said last week. Imports in the just-ended month rose 41.8% from a year earlier to $38.4 billion, which widened the trade deficit to $14.1 billion from $11.1 billion in July.

Prospects for job seekers are gloomier in most major economies than they were three months ago, as weak US and European economies begin to affect employers' confidence in other parts of the world, according to a quarterly hiring survey by ManpowerGroup. The global staffing services company said the fourth-quarter hiring outlook is lower in 21 of 39 countries and territories, including the United States. Prospects are stronger in 13 economies and unchanged in five others versus the third-quarter.

Manpower's global survey, which polled more than 65,000 employers, found evidence slow US growth was affecting job creation elsewhere. India's hiring outlook fell steeply from the third quarter, partly because its information technology industry relies on US sales. Employers in China are also expecting less robust hiring in the next three months. Europe's austerity programs are also hurting demand for goods produced in emerging markets, Manpower said.

European stock markets edged higher on Wednesday, 14 September 2011, on renewed hopes of some moves towards easing the sovereign debt crisis. The key benchmark indices in France, Germany and UK were up 1.13% to 2.21%.

Media reports on Tuesday, 13 September 2011, said that leaders from France, Germany and Greece will hold a conference call later on Wednesday, 14 September 2011, to discuss Greece's deficit-cutting measures and try to push through a second aid package agreed over the summer. Meanwhile, European Commission President Jose Manuel Barroso said options for the introduction of euro-zone bonds will be presented soon. On Friday, 16 September 2011, US Treasury Secretary Timothy Geithner will meet with European Union finance ministers.

Moody's Investor Service kept its long-term Aa2 rating of BNP Paribas on review for downgrade on Wednesday after cutting the ratings of peers Credit Agricole SA and Societe Generale SA by one notch, citing their exposure to the Greek economy.

Asian stocks reversed initial gains after Moody's Investors Service downgraded the long-term debt ratings of French banks--Credit Agricole SA and Societe Generale SA. The key benchmark indices in Indonesia, Japan, South Korea, Taiwan and Hong Kong fell by between 1.14% to 3.52%. The key benchmark indices in China, Hong Kong and Singapore were up by between 0.08% and 0.55% in volatile trade.

Chinese Premier Wen Jiabao said Wednesday that China is willing to expand its investment in Europe, without offering specifics of possible support, according to reports. Europe is China's biggest trading partner with around 30% of its exports going to Europe

The Asian Development Bank trimmed most of its 2011 and 2012 growth forecasts for the region while noting that Asia's emerging economies are showing resilience in the face of the darkening global environment. Fundamentals including sound budgets and high reserves offer a buffer for emerging economies, but there is no room for complacency, the Manila-based ADB warned in the update of its Asian Development Outlook on Wednesday.

US index futures reversed initial losses. Trading in US index futures indicated that the Dow could gain 24 points at the opening bell on Wednesday, 14 September 2011. US stocks gained on Tuesday as investors bought shares beaten down in recent weeks and bet European leaders would take action soon to ease the Greek debt crisis.

The Federal Open Market Committee (FOMC) is scheduled to undertake a two-day policy review on US interest rates on 20 and 21 September 2011.