Updated: September 2, 2017 12:56 am
Stock markets on Friday staged a smart rally after strong auto sales and encouraging August manufacturing data helped investors to ignore the disappointing GDP numbers. The benchmark Sensex moved 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. 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.
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. Vinod Nair, head of Research, Geojit Financial Services, said, “despite weak Q1 GDP growth of 5.7 per cent, the market continued to stay on a positive terrain due to better auto sales and encouraging manufacturing data for the month of August. On the other hand, investors are expecting knee jerk reaction from government to uplift the growth and they are largely focusing on long term benefit from GST than transitory hiccups.”
However, the rupee declined by 12 paise against the US dollar to end at 64.02 after the latest GDP numbers showed the country’s growth slowed to a three-year low. Dr Reddy’s gained 9.75 per cent after a settlement agreement with the Nasdaq-listed Vivus Inc. 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.
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