Key benchmark indices logged modest gains on first trading day of the week and the month led by Reliance Industries and HDFC. The barometer index, the S&P BSE Sensex, gained 213.66 points or 0.68% at 31,497.38, as per the provisional closing data. The Nifty 50 index rose 70.90 points or 0.72% at 9,859.50, as per the provisional closing data. Firmness in most of the global stocks boosted sentiment on domestic bourses.
The Sensex gained 331.56 points or 1.06% at the day's high of 31,615.28, its highest level since 27 September 2017. The index rose 156.76 points or 0.5% at the day's low of 31,440.48. The Nifty gained 106.80 points or 1.09% at the day's high of 9,895.40, its highest level since 27 September 2017. The index rose 42.45 points or 0.43% at the day's low of 9,831.05.
Domestic stocks saw a gap-up opening tracking positive Asian stocks and record close for US stocks overnight, as trading resumed after a long weekend. Key benchmark indices traded firm in morning trade. Indices extended gains in mid-morning trade and held firm later during the session. Volatility struck bourses in mid-afternoon trade as the key benchmark indices regained strength soon after trimming gains in afternoon trade. Stock markets were closed on Monday, 2 October 2017 on account of Mahatma Gandhi Jayanti.
The S&P BSE Mid-Cap index provisionally rose 0.77%, outperforming the Sensex. The S&P BSE Small-Cap index provisionally rose 0.49%, underperforming the Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,402 shares rose and 1,268 shares fell. A total of 160 shares were unchanged.
The total turnover on BSE amounted to Rs 3346 crore, higher than the turnover of Rs 3272.11 crore registered during the previous trading session on Friday, 29 September 2017.
Auto stocks saw mixed trend after declaring sales figures for September 2017. Ashok Leyland (down 0.69%), Escorts (down 0.18%) and TVS Motor Company (down 0.56%) fell. SML Isuzu (up 4.38%) rose.
Tata Motors surged 3.8% on reports the company won a government contract worth Rs 1120 crore for supplying 10,000 electric cars. According to reports, the vehicles will be procured by state-owned Energy Efficiency Services (EESL) at a per-unit price of Rs 11.20 lakh and will lay the foundation for the government's ambitious plan for a mass shift to electric vehicles (EVs) by 2030. These e-cars will be procured in two phases; 500 will be supplied in November 2017 and the remaining 9,500 cars in the second phase, for which dates have not been declared yet.
Meanwhile, Tata Motors on Sunday, 1 October 2017, announced strong second-quarter growth driven by robust results for the third consecutive month. The sales performance for September 2017 were at 53,965 units resulting in 25% growth over last year for the domestic passenger and commercial vehicle business. This is at the back of growing festive demand across segments, increased positive customer sentiments, introduction of new products and strong customer engagement initiatives.
Maruti Suzuki India fell 1.22%. The company said its total sales rose 9.3% to 1.63 lakh units in September 2017 over September 2016. Maruti Suzuki India's domestic sales rose 10.3% at 1.51 lakh units in September 2017 over September 2016. Export sales fell 1.3% at 11,671 units in September 2017 over September 2016. The announcement was made on Sunday, 1 October 2017.
Eicher Motors fell 0.23%. The company said its total Royal Enfield sales rose 22% to 70,431 units in September 2017 over September 2016. Eicher Motors said total Royal Enfield exports grew by 17% to 1,038 units in September 2017 over September 2016. Meanwhile, VE Commercial Vehicles, a joint venture between Volvo Group and Eicher Motors, reported 25.60% rise in total sales to 6,083 units in September 2017 over September 2016. The announcement was made on Sunday, 1 October 2017.
Mahindra & Mahindra gained 0.35% after the company announced robust auto and tractor sales in September 2017. Mahindra & Mahindra (M&M) said that total auto sales rose 16% to 53,663 units in September 2017 over September 2016. Domestic sales rose 19% to 50,456 units in September 2017 over September 2016. Exports fell 11% to 3,207 units in September 2017 over September 2016. The announcement was made during market hours today, 3 October 2017.
Separately, the company said total tractor sales jumped 49% to 45,563 units in September 2017 over September 2016. Domestic sales surged 52% to 44,000 units in September 2017 over September 2016. Exports rose 2% to 1,563 units in September 2017 over September 2016.
Bajaj Auto rose 1.44% after the company said its total sales rose 14% to 4.28 lakh units in September 2017 over September 2016. The announcement was made on Monday, 2 October 2017. The stock market was shut on Monday, 2 October 2017, for a public holiday.
Bajaj Auto said total domestic sales rose 10% to 2.81 lakh units in September 2017 over September 2016. Exports rose 21% to 1.46 lakh units in September 2017 over September 2016. Total motorcycle sales rose 11% to 3.69 lakh units in September 2017 over September 2016. Total commercial vehicles sales rose 32% to 59,074 units in September 2017 over September 2016.
On the macro front, the Nikkei India Manufacturing Purchasing Managers' Index, or PMI, stood at 51.2 in September, remaining unchanged from August. September saw a sustained expansion in the Indian manufacturing sector, supported by increases in both output and new orders. However, the rates of expansion eased slightly in both cases. The data was released during market hours today, 3 October 2017.
Overseas, European stocks were mixed. Asian stocks gained after strong factory data and the prospect of American tax cuts boosted confidence in the global economy. Markets in China and South Korea remain shut. US equities closed at record highs yesterday, 2 September 2017 as Wall Street kicked off the fourth quarter on a high note on optimism about a recovery in manufacturing.
In US economic data, the closely watched ISM manufacturing index was at 60.8 in September, representing the highest level for the economic reading since 2004 and up from 58.8% in August. A reading of 50 indicates expansion. A separate reading on manufacturing activity from IHS Markit came in at 53.1 for the same month, compared with 52.8 in the prior month.
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