Sensex ends below 30,000-mark: Maruti, Bajaj Auto, HeroMoto rise
All the sectoral indices led by consumer durables, PSU, metal, auto, bank and IT were trading in the positive zone, rising by up to 0.96%.business Updated: May 02, 2017 15:55 IST
Robust factory output and auto sales boosted investor sentiment on Tuesday with the Sensex reclaiming 30,000-level in early trade on Tuesday.
However, the market gave away early gains with the Sensex closing flat at 29,921.18 and Nifty up 0.1% at 9,313.80.
Markets opened in the green on robust auto sales and PMI data that showed manufacturing conditions in India improved for the fourth straight month in April.
Auto shares rose after the companies posted robust sales in April.
Maruti Suzuki India posted the best domestic monthly sales in April, of 144,492 units, registering a 23.4% growth. Nissan Motor India posted a 39% growth, Toyota Kirloskar Motor (TKM) grew by 47.85% and Royal Enfield by 25%, selling a record number of 60,142 bikes in April 2017.
However, Ambuja Cement’s weaker-than-expected quarterly results raised concerns about corporate results. Ambuja Cements fell as much as 4.21% after its quarterly profit missed estimates, becoming the main drag on the NSE index.
Analysts said they expect indexes to trade range-bound as companies continue to report results, though the overall outlook remains hopeful about an economic recovery.
A business survey on Tuesday showed that manufacturing activity in the country expanded for a fourth consecutive month in April, helped by stronger growth in new orders although rises in output and employment slowed.
“Markets are in a consolidation mode as the corporate earnings season unfold,” said Rakesh Tarway, head of research, Reliance Securities Ltd. “Till the end of the earnings season, we can only expect to see a day-to-day sector-based or stock-based impact on the indexes based on the earnings performance.”
Shares of most Indian auto makers however rose after they reported a jump in April vehicle sales on Monday.
Maruti Suzuki gained as much as 2.53%, while Eicher Motors rose 2.61%to a record high of 26,747.90 rupees.
Oil refiners also rose on hikes in petrol and diesel prices. Bharat Petroleum Corp gained as much as 2.75%, Hindustan Petroleum Corp rose as much as 2.40%, while Indian Oil Corp climbed as much as 1.87%.
The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) in April matched March’s reading of 52.5, indicating modest factory growth.
Brokers said sentiment was influenced by emergence of buying by participants driven by encouraging earnings and strong auto sales data in April month amid a mixed trend at other Asian bourses.
(With inputs from agencies)