Key benchmark indices continued to hover in positive terrain in mid-morning trade tracking strength in most Asian stocks after a gauge of China's manufacturing rose to a 16-month high, boosting investor confidence in the global economic recovery. China is the World's second largest economy after the US. The barometer index, the S&P BSE Sensex, was up 165.91 points or 0.89%, off about 45 points from the day's high and up close to 105 points from the day's low. The market breadth, indicating the overall health of the market, was strong. All the thirteen sectoral indices on BSE were in the green.
Index heavyweight and cigarette maker ITC gained. Capital goods pivotals rose. L&T gained after its construction business secured new orders worth Rs 1141 crore in August 2013 in various business segments. Maruti Suzuki India rose after the company reported strong August sales. TVS Motor Company rose after the company reported a marginal increase in sales in August month. Bajaj Auto rose despite company reported weak August sales.
The market surged in early trade. The S&P BSE Sensex hit highest level in over two weeks. The 50-unit CNX Nifty hit one hit high. It held firm in morning trade. It continued to hover in positive terrain in mid-morning trade.
At 11:25 IST, the S&P BSE Sensex was up 165.91 points or 0.89% to 18,785.63. The index rose 208.27 points at the day's high of 18,827.99 in morning trade, its highest level since 16 August 2013. The index gained 59.21 points at the day's low of 18,678.93 in early trade.
The CNX Nifty was up 46.65 points or 0.85% to 5,518.45. The index hit a high of 5,528.30 in intraday trade, its highest level since 26 August 2013. The index hit a low of 5,478.85 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,157 shares rose and 582 shares fell. A total of 104 shares were unchanged.
Among the 30-share Sensex pack, 22 stocks rose and rest of them fell. Tata Steel (up 2.75%), Hero MotoCorp (up 2.64%) and Jindal Steel & Power (up 2.55%), edged higher from the Sensex pack.
Index heavyweight and cigarette maker ITC rose 2.79%.
Capital goods pivotals rose. L&T gained 0.55% after the company said during market hours today, 2 September 2013 that its construction business secured new orders worth Rs 1141 crore in August 2013 in various business segments.
Bhel gained 1.09%.
Maruti Suzuki India rose 2.22% after the company said during market hours today, 2 September 2013 that its total sales spurted 61.2% to 87,323 units in August 2013 over August 2012. Domestic sales rose 51.6% to 76,018 units in August 2013 over August 2012. Exports spurted 180.9% to 11,306 units in August 2013 over August 2012.
Bajaj Auto rose 1.04% despite company reported weak August sales. The company said during market hours today, 2 September 2013 that its total sales fell 9% to 3.12 lakh units in August 2013 over August 2012. Motorcycle sales declined 8% to 2.78 lakh units in August 2013 over August 2012. Commercial vehicles sales declined 17% to 33,605 units in August 2013 over August 2012. Exports rose 10% to 1.44 lakh units in August 2013 over August 2012.
TVS Motor Company rose 2.13% after the company reported a marginal 0.57% increase in total sales to 1.55 lakh units in August 2013 over August 2012. TVS Motor Company said its total two-wheeler sales fell 1.5% to 1.48 lakh units in August 2013 over August 2012.
Domestic two-wheeler sales were down 6.21% at 1.27 lakh units in August 2013 over August 2012. Motorcycles sales, however, grew by 14.23% to 61,313 units. Scooters sales declined by 4.49% to 36,478 units during the period under review. Exports during the month grew by around 53% at 27,425 units in August 2013 over August 2012. Two-wheeler exports increased by 40% to 21,374 units in August 2013 over the same month last year. In the three-wheeler segment, the company said total sales surged by around 81% to 7,063 units in August 2013 over August 2012.
On the macro front, India's economy grew at the slowest quarterly rate since the global financial crisis in the three months through June, lower than expected and hurt by a contraction in mining and manufacturing, government data showed on Friday, 30 August 2013. The GDP grew 4.4% in Q1 and was the slowest growth since the Jan-March quarter of 2009. Manufacturing fell an annual 1.2% during the quarter while mining fell by 2.8%, the data showed. While, farm output rose 2.7%.
Indian factory activity shrank for the first time in more than four years last month, adding to the country's deepening economic malaise even as the Reserve Bank of India (RBI) struggles to defend the battered rupee currency, a survey showed. The HSBC Manufacturing PMI, compiled by Markit, sank to 48.5 in August from 50.1 in July, the lowest reading since March 2009.
Most Asian stocks rose on Monday after a gauge of China's manufacturing rose to a 16-month high, boosting investor confidence in the global economic recovery. Key benchmark indices in China, Hong Kong, Japan, Taiwan and Singapore rose by 0.07% to 1.83%. Key benchmark indices in South Korea and Indonesia fell by 0.04% to 2.13%.
China's economy is strengthening after a two-quarter slowdown, with a manufacturing gauge rising to a 16-month high in August as new orders jumped and overseas demand rebounded. The Purchasing Managers' Index was at 51.0, the National Bureau of Statistics and China Federation of Logistics and Purchasing said in Beijing. A separate manufacturing PMI released by HSBC Holdings Plc and Markit Economics rose to 50.1 last month from 47.7 in July, the biggest gain in three years and the first reading above 50 since Apr
South Korea's exports expanded at a faster pace in August than the previous month in a sign of economic recovery, the Ministry of Trade, Industry and Energy said Sunday, beating market expectations.
US stocks fell in a thinly traded session on Friday, 30 August 2013 as the S&P 500 index recorded its steepest decline since May 2012 and investors avoided making large bets before a long weekend with the situation about Syria still uncertain. US stock markets remain closed today, 2 September 2013, for the Labor Day holiday.
President Barack Obama has decided to seek congressional authority to attack Syria for alleged chemical weapons prompting criticism that he's undermined US credibility.
Investors across the globe are eyeing the next policy meeting of the Federal Open Market Committee (FOMC) scheduled this month, with their focus squarely on the timing of tapering of Federal Reserve's bond purchases. The FOMC holds a two-day policy meeting on 17-18 September 2013 to decide on interest rates in the United States. The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
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