Gains in auto, metal, consumer goods and pharma shares pushed the markets higher
Domestic stock markets pushed higher in a volatile session on Tuesday, a day after the government said the economy was set for a “V-shaped” recovery as the country’s gross domestic product contracted 23.9 per cent in the June quarter. The S&P BSE Sensex index rose 598.53 points – or 1.55 per cent – to touch 39,226.82 at the strongest level during the session, whereas the broader NSE Nifty 50 benchmark climbed to as high as 11,553.55, up 166.05 points – or 1.46 per cent – from its previous close. Gains in automobile, metal, consumer goods and pharmaceutical shares pushed the markets higher.
The Sensex ended 272.51 points – or 0.71 per cent – higher at 38,900.80, and the Nifty settled at 11,470.25, up 82.75 points – or 0.73 per cent – from its previous close. Both indices had fallen more than 2 per cent in the previous session following a border flare-up between India and China.
Bharti Airtel ended 6.38 per cent higher, after the Supreme Court gave telecom companies 10 years to pay dues owed to the government. Airtel boosted the S&P BSE Telecom index, which closed with a gain of 3.81 per cent, and was also the biggest contributor (72.64 points) to the gain in Sensex.
Analysts say investors looked past the GDP reading on promising factory activity data. A private survey showed factory activity in the country picked up in August, marking the first rise in five months.
The Nifty Auto and Nifty Metal indices climbed up 0.58 per cent and 3.15 per cent respectively, as automobile companies reported their monthly sales.
Maruti Suzuki India shares ended 1.04 per cent higher, having risen as much as 2.63 per cent during the session, after the carmaker said its passenger vehicle sales in the domestic market rose 21.3 per cent in August.
Equities elsewhere in Asia moved higher following strong readings on China’s manufacturing sector. MSCI’s broadest index of Asia Pacific shares outside Japan was last seen up 0.84 per cent.
The E-Mini S&P 500 futures were up 0.16 per cent, indicating a positive start for Wall Street on Tuesday, a day after the benchmark US index closed 0.22 per cent lower.
European shares started the day on a mixed note, with the United Kingdom’s FTSE benchmark last seen trading 1.31 per cent lower, while France’s CAC and Germany’s DAX indices were up 0.18 per cent and 0.53 per cent respectively.
