Sensex and nifty continued their record-breaking run on Thursday with share prices of auto and auto component majors closing higher on expectations of lower interest rates after a better monsoon forecast eased inflation fears.
The S&P BSE Auto index closed the session 0.98% higher at 23,218.58, while the Nifty Auto Index closed the session 1.04 % higher at 10,410.75. Auto stocks rallied sharply led by the Eicher Motors, which ended 5.57% higher at Rs 29,402.1 a share on BSE.
Eicher Motors hit an intra-day and 52-week high at Rs 29,983 on Thursday. Apart from Eicher Motors, Hero Motocorp, Bajaj Auto, Bosch, Ashok Leyland, Exide Industries, Maruti Suzuki India, Bharat Forge and MRF were among the gainers. The price of these stocks surged between 0.20% and 5.60%.
“While demonetisation had stalled a revival, there are early signs of a two-wheeler export market recovery. The structural trend of customers preferring scooters in 2Ws and SUVs in 4Ws continued in FY17. Scooters’ share increased to 31.8% of 2W volumes. Similarly, SUVs continued to grow faster than the PV industry, increasing its share to 24.8% of domestic PVs,” Motilal Oswal said in a report.
FY17 domestic PV volumes grew 9.2% to 3.05 million units, driven by 30% growth in UVs and 4% in cars. “New products drove entire growth, with 185% share of incremental volumes,” Motilal Oswal’s report added. Motilal Oswal’s top picks are Tata Motors, Maruti Suzuki, Amara Raja and M&M.
In addition, post Supreme Court’s judgement of banning BS-III engine vehicles, March witnessed a late spurt in volumes. “Maruti Suzuki with Ignis launch posted a record high domestic growth across the segments, surpassing market expectations. Similar story was emulated by TaMo’s PV business, which was buoyant on the recent launches of Tiago, Hexa and Tigor,” LKP research in a report.
Sensex, Nifty at lifetime highs
Extending their record setting run for the second day, benchmarks Sensex and Nifty finished at fresh lifetime highs on Thursday as sentiment remained upbeat on forecast of a normal monsoon this year. The BSE Sensex edged up by about 3 points to end at 30,250.98, while the broader NSE Nifty gained 15 points to reach 9,422.40. The indices had ended at record highs in Wednesday’s session as well after the weather office said monsoon rainfall this year will exceed its earlier forecast, easing inflation worries.
Two-wheeler makers Hero MotoCorp and Bajaj Auto were the top performers in the Sensex pack on expectations that normal monsoon will boost rural demand. The 30-share BSE Sensex opened higher and soared to yet another intra-day record of 30,366.43, but slipped on profit-booking towards the fag-end. It finally ended at 30,250.98, up 2.81 points, or 0.01%, surpassing the previous record closing high of 30,248.17 reached on Wednesday. The gauge has now risen by 392.18 points in four sessions.
On similar lines, the 50-share NSE Nifty gained 15.10 points, or 0.16%, to 9,422.40 after scaling a fresh intra-day high of 9,450.65. The index broke its previous record closing of 9,407.30 reached on Wednesday.
“Today’s volatility in the European market ahead of BoE (Bank of England) policy meet has turned investors to profit-booking. But positive implication of a good monsoon forecast and government’s focus on reforms is attracting investors to stay in the market,” said Vinod Nair, head of research at Geojit Financial Services.
Fourteen scrips in the 30-share Sensex pack ended higher, while the remaining 16 closed with losses. Major gainer Hero MotoCorp rose 4.26%. It was followed by Bajaj Auto 3.12%, Adani Ports 2.28%, SBI 1.15%, ITC 1.00%, Sun Pharma 0.93% and Wipro 0.89%. However, Bharti Airtel fell 2.21%, Gail 2.14%, ONGC 1.94%, HUL 1.78%, Axis Bank 1.69%, NTPC 1.39%, Coal India 1.20%, Power Grid 1.14% and Tata Motors 1.08%.
Among the sectoral indices, consumer durables rose 1.65%, auto 0.98%, metal 0.69%, teck 0.57%, healthcare 0.55% and IT 0.29%. However, power fell 1.22%, utilities 1.03%, oil&gas 0.93%, energy 0.63% and capital goods 0.51%. The BSE Mid-Cap index rose 0.05%, outperforming the Sensex. The BSE Small-Cap index fell 0.05%.
(With inputs from PTI)