Strong buying demand in index pivotals triggered a sharp rally on the bourses on first trading day of the week and month. The barometer index, the S&P BSE Sensex, gained 553.42 points or 1.39% at 40,267.62. The Nifty 50 index gained 165.75 points or 1.39% at 12,088.55. The Sensex and the Nifty, both, scaled record high. Sentiment was boosted by steep slide in crude oil prices during the previous trading session. Auto shares were in demand after monthly sales data.
Domestic stocks drifted higher in early trade on buying demand in index pivotals. Key indices marched ahead as the day's trading session progressed. The Sensex hit day's high above the psychological 40,000 level and the Nifty hit day's high above the psychological 12,000 level.
Broader market lagged key benchmarks. The S&P BSE Mid-Cap index rose 0.9%. The S&P BSE Small-Cap index rose 0.48%.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1191 shares rose and 1418 shares fell. A total of 160 shares were unchanged.
Auto shares were in demand after monthly sales data. Hero MotoCorp surged 6.01%. The company reported sales of 652,028 units of motorcycles and scooters in the month of May 2019. The company recorded a sequential increase in sales compared to the previous month (April 2019) when it sold 574,366 units of two-wheelers.
Bajaj Auto gained 3.92% after the company reported 3% increase in total vehicle sales to 4.19 lakh units in May 2019 over May 2018. Bajaj Auto's total domestic vehicle sales increased 5% to 2.35 lakh units. Total export rose by 1% to 1.83 lakh units in May 2019 over May 2018.
In a separate announcement during trading hours today, Bajaj Auto said that it has agreed on new electric vehicle alliance with KTM Industries AG. As per the deal, Bajaj Auto and KTM Industries AG will develop a common 48 volt electric two-wheeler platform in the power range 3 to 10 kW for planned serial production in India. This platform will support different product variants - scooters, mopeds, small mopeds, under brands of both partners. The serial production will start at Bajaj's production site in Pune by 2022.
Maruti Suzuki India rose 2.89%. Maruti Suzuki India reported 22% decline in total vehicle sales to 1.34 lakh units in May 2019 over May 2018. Total domestic passenger vehicle sales declined 25.1% to 1.21 lakh units. Total export sales fell by 2.4% to 9089 units. The announcement was made on Saturday, 1 June 2019.
Tata Motors rose 1.19%. Tata Motors Commercial and Passenger Vehicles Business sales in the domestic market in May 2019 were reported at 40,155 units, a drop of 26%, as against 54,290 units sold in May 2018, as market sentiments continued to be muted. The announcement was made on Saturday, 1 June 2019.
Mahindra & Mahindra (M&M) rose rose 1.15% to Rs 654.55. M&M Benefit Trust (the Trust) which forms part of the promoter group of the company, has today sold 1.92 crore equity shares (treasury stock) representing 1.54% of the total paid up equity share capital of the company. The sale has been executed on the stock exchange(s), at a gross price of Rs 648 per share. Following the sale, the shareholding of the promoters and promoter group of the company has come down from 20.44% to 18.90% of the total paid up equity share capital of the company. The announcement was made during market hours today, 3 May 2019.
M&M reported a 3% decline in total vehicle sales to 45,421 units in May 2019 over May 2018. Total domestic sales declined 2% to 43,056 units in May 2019 over May 2018. Total exports declined 22% to 2,365 units in May 2019 over May 2018. The announcement was made on Saturday, 1 June 2019.
Further, M&M's Farm Equipment Sector (FES), reported a 16% decline in total sales to 24,704 units in May 2019 over May 2018. Total domestic sales declined 17% to 23,539 units in May 2019 over May 2018. Total exports increased 3% to 1,165 units in May 2019 over May 2018.
Crude oil prices dropped amid stalling demand as trade wars fanned fears of a global economic slowdown. Brent for August 2019 settlement was up 16 cents at $62.15 a barrel. The contract fell $3.34 a barrel or 5.11% to settle at $61.99 a barrel during the previous trading session.
On the macro front, India's economic growth rate slowed to five-year low of 5.8% in January-March 2018-19, due to slackness in agriculture and manufacturing sectors, official data stated. The Central Statistics Office also revealed that GDP growth during the 2018-19 fiscal stood at 6.8%, lower than 7.2% in the previous financial year. The data was released after market hours on Friday, 31 May 2019.
The combined Index of Eight Core Industries stood at 127.5 in April 2019, which was 2.6% higher as compared to the index of April 2018. The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).
The total gross GST revenue collected in the month of May 2019 is Rs 1,00,289 crore of which CGST is Rs 17,811 crore, SGST is Rs 24,462 crore, IGST is Rs 49,891 crore (including Rs 24,875 crore collected on imports) and Cess is Rs 8,125 crore (including Rs 953 crore collected on imports). The revenue in May 2018 was Rs 94,016 crore.
Overseas, European shares were trading lower while Asian stocks were mixed on Monday amid increasing concerns over the state of global trade. A private gauge indicated that activity in China's factories held steady in May. The Caixin China manufacturing purchasing managers index in May remained unchanged from April at 50.2, Caixin Media Co. and research firm Markit said Monday.
US stocks closed sharply lower Friday, after President Donald Trump unexpectedly announced plans to impose tariffs on imports from Mexico in an attempt to pressure the country to stem the flow of migrants across the U.S. border.
Late Thursday, Trump announced that the U.S. would impose a 5% tariff on all goods from Mexico until that country stops the flow of illegal immigrants into the country. He said the tariffs will rise to 10% on July 1 if the crisis persists, and by another 5% for every successive month, up to 25% by October 1.
In US economic data, the University of Michigan's final consumer sentiment index reading for May came in at 100 versus an initial 102.4, but remained up from 97.2 in April.
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