Sensex up 103 pts at two-week high on mfg growth, auto sales

Sensex up 103 pts at two-week high on mfg growth, auto sales

Sensex up 103 pts at two-week high on mfg growth, auto sales

Rising for the third session, the benchmark Sensex today closed 103 points up at a two-week high after an uptick in manufacturing sector growth and signs of pickup in auto sales outweighed concerns of a poor monsoon.

Buying by foreign funds amid positive global cues also boosted the domestic sentiment. The decision to increase diesel, petrol and non-subsidised LPG prices after hiking railway freight and fare was interpreted by investors as the government's resolve to take tough decisions, said brokers.

Shares of auto, metal, capital goods and realty attracted buying while pharma, IT and refinery sectors ended lower.

The BSE 30-share Sensex resumed better and moved in a narrow range of 105 points before concluding at 25,516.35, a net gain of 102.57 points or 0.40 per cent. In three days so far, it has flared up by 453.68 points or 1.81 per cent.
The 50-issue CNX Nifty of the NSE also rose by 23.35 points, or 0.31 per cent, to close at 7,634.70.

Dealers said gains were capped as output in eight important infrastructure industries decelerated in May. Also, India's fiscal deficit in the first two months of the current financial year touched Rs 2.4 lakh crore.

Shares of country's largest car-maker Maruti Suzuki climbed 6.01 per cent on strong sales growth in June. Mahindra & Mahindra, another automaker major, surged 4.03 per cent after reporting a marginal increase in total sales in June.

Hindalco Industries also caught buyers' fancy following reports of an upgrade by a rating agency. It ended 6.76 per cent higher.

India's manufacturing sector growth in June expanded at the fastest pace since February, supported by growing order flows, especially from overseas, an HSBC survey said today.

On the global front, growth in China's manufacturing in June indicating arrest in slowdown in the world's second-biggest economy and firm European opening ahead of a slew of economic reports boosted FII buying.

Foreign Portfolio Investors (FPIs) had bought shares worth a net Rs 1,288.16 crore yesterday.

Refinery stocks, which were in demand at initial stages after the hike in petrol and diesel prices by government, fell back on profit-booking.

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