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