 "National Stock Exchange")
Benchmark share indices firmed up in the latter half of the trading session to end higher with auto shares gaining the most on the back of encouraging sales growth in August. However, further upsides remained capped after expectations of a robust US jobs data, due for release later today, would raise the prospects of a rate hike by the US Federal Reserve.
Further, investors refrained from extending positions in the wake of an extended weekend holiday. Markets will remain closed for trading on Monday, September 5, on account of Ganesh Chaturthi.
The S&P BSE Sensex ended up 109 points at 28,532 and the Nifty50 gained 35 points to settle at 8,810. Among broader markets, BSE Midcap and Smallcap indices ended up over 1% each. Market breadth ended positive with 1523 gainers and 1204 losers on the BSE.
“Though markets were subdued early in the day, the recovery in telecom stocks from yesterday’s panic fall helped indices swing higher. Auto and banks continued the uptrend, and broader market sentiments remained upbeat towards better growth in the second half of the year. To that end, it seemed as if markets were less worried about impending US non - farm payrolls data and the potential of a September rate hike from US" said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.
Back home, foreign portfolio investors (FPIs) sold shares worth a net Rs 302 crore on Thursday as per provisional stock exchange data.
Besides, the India Meteorological Department (IMD) said that for the country as a whole, cumulative rainfall during this year's monsoon so far (till 31 August 2016) was 3% below the long period average (LPA).
Auto stocks were in focus after the passenger vehicle (cars, utility vehicles and vans) segment has posted strong double-digit domestic sales growth of over 16% in August.
Tata Motors closed over 1% higher. The company recorded total vehicle sales (including exports) growth of 6% in August 2016 at 43,061 vehicles compared to 40,679 units in August 2015.
Maruti gained over 2%. Maruti Suzuki India posted a 12.2 per cent rise in total sales in August at 1,32,211 units as against 1,17,864 units in the same month a year ago. M&M ended up over 1%.
Bajaj Auto ended flat after it reported 5% per cent decline in its total sales at 3,25,347 units in August as against 3,41,965 in the same month a year ago.
Hero MotoCorp gained 0.4% after the two-wheeler major reported a 28% growth in its total two-wheeler sales at 6.16 lakh units in August 2016 over August 2015.
Lupin gained 1% after it announced that its US subsidiary Gavis Pharmaceuticals LLC, USA has received tentative approval from the United States Food and Drug Administration (USFDA) to market a generic version of Pfizer Inc.'s Zithromax for oral suspension, 100mg/5ml and 200mg/5ml.
Housing Development Finance Corp Ltd, India’s largest mortgage lender, on Wednesday informed exchanges that it was opening the second tranche of its rupee denominated Masala bonds offering to raise another Rs 500 crore. The stock gained 1%.
Bharti Airtel staged a recovery after the sharp fall in the previous following the launch of Reliance Jio with disruptive pricing strategy for its mobile services. Idea Cellular ended up 0.4%.
L&T ended down 0.3%. The company said its construction arm has bagged orders worth Rs 1,458 crore across business verticals.
Among other shares, Pune-based hospitality firm Delta Corp ended down 1.6% after it announced that it has acquired Gauss Network, which owns Adda52.com, India’s leading poker site, in a part cash, part equity deal. The value of the deal, according to reports, is over Rs 150 crore.
Brooks Laboratories ended 20% higher on the back of heavy volumes after the company said it has got manufacturing license for its new manufacturing facility at Vadodra in Gujarat.
Select infrastructure stocks gained after the Union Cabinet's decision requiring the government agencies to pay 75% of arbitral awards would result in company’s debt being reduced by half. HCC ended up 9% while Patel Engineering surged 20%.
