Money on the markets
A maturing market amid the mayhem
Amtek Auto was the star performer in the auto index, with its shares surging nearly 16 percent. Its shares have jumped nearly 50 percent since July.
Top auto companies in India like Mahindra & Mahindra and Hero Honda ended as top Sensex gainers, adding 6.2 and 4.2 percent respectively.
The sectoral index has gained nearly 150 percent this year, as a revival in demand helped auto companies boost sales.
The BSE Auto Index closed 1.3 points lower on Wednesday as investors across Asia remained cautious after the overnight slide on Wall Street.
The Auto Index was the top performer yesterday, gaining as much as 2.45 percent in a broader market that shed 115 points.
The past two months have been exciting for auto stocks. Helped by better car sales and solid earnings by auto companies, the BSE Auto Index has gained over 20 percent since June, a sharp contrast to the Sensex’s meagre gain of around 4 percent over the same period.
Car sales in India jumped an annual 7.8 percent in June, climbing for a fifth straight month and signifying that demand for autos was picking up.
The BSE Sensex erased early morning gains of over 2 percent and ended 1.46 percent down on Wednesday as weak sentiments across Asia downplayed investor sentiments.
Investor sentiments also had plenty of support from strong global markets.
The benchmark posted a near 500-points gain with stocks like ICICI, HDFC and ITC surging. The Nifty index rose by over 140 points.
The outcome of the elections this weekend weighed on investors’ minds as the benchmark slipped nearly 200 points to close at 11,683.
Some index heavyweights took a beating – Reliance Industries slipped 1.98 percent, SBI ended 4.8 pct lower and L&T dropped 2.8 percent.
The Sensex closed 2.25 percent higher on Thursday, as gains on Wall Street and positive inflation data boosted investor sentiments.
After gaining nearly 2 percent during trade, the benchmark index pared gains and closed just 80.5 points higher at 8902, as cuts in factory gate duty and service tax triggered short covering ahead of the expiry of monthly derivatives contracts.
The day belonged to auto and metal stocks, which appeared attractive on expectation the duty cuts on Tuesday will boost sales.
The BSE Auto Index closed 3 percent higher and the BSE Metal Index ended 1.2 percent up. Apollo Tyres, Tata Motors (trucks) and Ashok Leyland have slashed prices after yesterday’s announcement.
The BSE Sensex fell in early trade but pared losses to close 0.3 percent down on Wednesday as the much-awaited U.S. stimulus package failed to shore up investor sentiment globally.
Investors were disappointed with the $838 billion stimulus bill passed by the U.S. Senate on Tuesday and their reaction clearly showed greater concern about financial security.