Sensex rides on auto sales numbers, ends week on a high

Updated: Fri, Sep 01, 2017
05:39 pm
PTI
RELATED NEWS
Asia shares subdued, May's Brexit options eyed after crushing vote defeat Asia shares subdued, May's Brexit options eyed after crushing vote defeat
Gold prices rise as failed Brexit vote drags on dollar Gold prices rise as failed Brexit vote drags on dollar
U.S. oil prices edge down amid uncertain global economic outlook U.S. oil prices edge down amid uncertain global economic outlook
McDonald's loses 'Big Mac' trademark case to Irish chain Supermac's McDonald's loses 'Big Mac' trademark case to Irish chain Supermac's
France seeks Renault board meeting to replace Ghosn - sources France seeks Renault board meeting to replace Ghosn - sources

Stock markets today ended the week

with a positive spin after strong auto sales and encouraging

August manufacturing data helped investors put behind the

disappointing GDP numbers.

Strengthening for the third day, the benchmark Sensex

went up 162 points to end at 31,892.23, a three-week high,

while the Nifty closed short of 10,000.

It was eighth weekly gain in nine for both the Sensex and

the Nifty, surging 296.17 points, or 0.93 per cent, and 117.35

points, or 1.19 per cent, respectively.

Automobile manufacturers led by Maruti Suzuki posted good

passenger vehicles (PV) sales growth in August riding on

strong consumer sentiment ahead of the festive season.

In a related development, the Nikkei Markit India

manufacturing PMI rebounded to 51.2 in August from a low of

47.9 in the previous month, signalling a turnaround from

July's GST-related contraction.

Right from the word go, the 30-share BSE index remained

above the base line till the very close as it settled up

161.74 points, or 0.51 per cent, at 31,892.23 -- a level last

seen on August 8.

The NSE Nifty too ended on a high, up 56.50 points, or

0.57 per cent, at 9,974.40 after shuttling between 9,983.45

and 9,909.85 during the day.

India's GDP growth slumped to a three-year low of 5.7 per

cent during April-June -- lagging China for the second

straight quarter -- as manufacturing slowed ahead of the GST

launch amid demonetisation effect, according to official data

released after trading hours yesterday.

Risk aversion faded after speculation that the RBI may

announce a cut in rates at its next policy meet in October to

accelerate growth, lifting interest-sensitive stocks of auto

and realty sectors, analysts said.

Beginning of the September futures and options (F&O)

series paved the way for creation of fresh bets, which nudged

participants to buy more, they added.

Dr Reddy's ticked all the right boxes and was the top

scorer with a gain of 9.75 per cent after a settlement

agreement with the Nasdaq-listed Vivus Inc yesterday.

Auto stocks led by Ashok Leyland, Maruti Suzuki, Tata

Motors, Hero MotoCorp, Bajaj Auto, TVS Motors, Eicher Motors

and M&M rose up to 5.42 per cent, mainly on the back of

better-than-expected August sales figures.

Asian Paints, Tata Steel, ONGC, Kotak Bank and Axis Bank

contributed to the Sensex rally.

Foreign institutional investors (FIIs), who had been in

net selling mode, changed track and bought shares worth Rs

77.58 crore yesterday. DIIs too bought shares worth Rs 509.71

crore, according to provisional data.

Asian shares swung both ways. Europe got off to a good

start.

Broader markets such as mid-cap and small-cap indices

were ahead of the Sensex by adding 0.95 per cent and 0.78 per

cent, respectively.

On the sectoral front, realty was a clear winner, up 2.59

per cent, followed by auto at a distant 1.94 per cent and

metal 1.86 per cent.

 

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

By continuing to use the site, you agree to the use of cookies. You can find out more by clicking this link

Close