The key benchmark indices extended gains and hit a fresh intraday high in mid-morning trade, backed by firmness in auto and pharma stocks. At 11:25 IST, the barometer index, the S&P BSE Sensex, was up 283.10 points or 0.72% at 39,677.77. The Nifty 50 index was up 77.45 points or 0.66% at 11,866.80.
In the broader market, the S&P BSE Mid-Cap index was up 0.47%. The S&P BSE Small-Cap index was up 0.42%.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1170 shares rose and 889 shares fell. A total of 139 shares were unchanged.
The Indian manufacturing sector lost growth momentum in June, following an acceleration in May. The IHS Markit India Manufacturing Purchasing Managers' Index (PMI) was at 52.10 in June, down from May's three-month high of 52.70 but still signalling an improvement in operating conditions across the sector. A reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease.
Auto stocks witnessed heavy buying. Escorts (up 3.35%), Hero MotoCorp (up 2%), TVS Motor Company (up 1.95%), and Ashok Leyland (up 0.86%) and Mahindra and Mahindra (up 0.8%) advanced.
Maruti Suzuki India was up 0.15% to Rs 6544. The company's total vehicles sales fell 14% to 1.24 lakh units in June 2019 over June 2018. Total domestic sales fell 15.3% to 1.14 lakh units, while total exports rose 5.7% to 9847 lakh units.
Two-wheeler major Bajaj Auto was up 1.51% to Rs 2870.85. The company's total vehicles remained almost unchanged in June 2019 over June 2018. Total vehicles sales were at 4.04 lakh units in June 2019. Total domestic sales fell 2% to 2.29 lakh units, while total exports rose 3% 1.75 lakh units.
Eicher Motors was up 2.12%. Total sales of Eicher trucks & buses fell 28.7% to 4502 units in June 2019 over June 2018. Total domestic sales fell 24.7% to 4136 units while total exports fell 55.3% to 366 units during the period under review.
Pharma stocks advanced. Dr Reddy's Laboratories (up 2.42%), IPCA Laboratories (up 1.91%), Lupin (up 1.56%), Aurobindo Pharma (up 1.03%), Divi's Laboratories (up 0.76%), Alkem Laboratories (up 0.67%), Cadila Healthcare (up 0.6%), Cipla (up 0.59%), Sun Pharmaceuticals Industries (up 0.56%), Glenmark Pharmaceuticals (up 0.53%), Piramal Enterprises (up 0.46%) and Wockhardt (up 0.39%) edged higher. GlaxoSmithKline Pharmaceuticals (down 0.05%) edged lower.
Share price of Strides Pharma Science gained 2.19% to Rs 407.60. The company got approval for sale of its investment in Arrow.
Eveready Industries India hit a lower circuit of 5% at Rs 76. The company announced that Price Waterhouse has resigned as statutory auditor citing its inability to analyse the impact of financial support extended by the battery maker. The announcement was made on Friday, 28 June 2019. In a separate announcement, the company has also entered into a contract with Madhu Jayanti International to sell assets, valued at Rs 6 crore, related to tea packaging product.
Overseas, Asian stocks were trading higher on Monday after U.S. President Donald Trump and Chinese President Xi Jinping agreed to hold off on slapping additional tariffs in an effort to resume trade talks.
The moves came after Trump and Xi emerged from a meeting on the sidelines of the Group of 20 summit in Osaka, Japan. Both sides confirmed in separate comments that they did not plan to levy any new tariffs against each other's products at the present time.
Data released Monday from a private survey showed that Chinese factory activity in June was at its lowest since January. The Caixin/Markit factory Purchasing Managers' Index (PMI) for June was 49.4. The PMI reading for May was 50.2. Separately, the Purchasing Managers' Index (PMI) stood at 49.4 in June, China's National Bureau of Statistics said on Sunday, unchanged from the previous month.
US stocks closed higher on Friday, 28 June 2019 led by banks after the Federal Reserve's second round of stress test results. In U.S. economic data, the Commerce Department reported U.S. consumer spending rose 0.4% in May, while personal incomes rose 0.5% during the same period.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
