Sensex advances 106 points, Nifty rises 25 points, gains extended on robust GDP data; auto stocks up

Mumbai: The BSE Sensex advanced about 106 points in early session today, maintaining its positive form for the second day following robust growth data for the March quarter. Investors creating new positions at the beginning of the June futures and options (F&O) series also lifted the key indices. The 30-share index, which had rallied 416.27 points in the previous session, was trading higher by 105.57 points, or 0.30 percent, at 35,427.95. Sectoral indices, led by metal, auto, teck, IT, consumer durables and capital goods, were trading in the positive zone with gains of up to 1.13 percent. [caption id=“attachment_4411019” align=“alignleft” width=“300”]  Stock broker. Reuters image.[/caption] The NSE Nifty also went up by 25.40 points, or 0.24 percent, to 10,761.55. Official data released after market hours yesterday showed that India’s January-March 2018 GDP growth soared to a seven-quarter high of 7.7 percent, spurred by robust performance of manufacturing, construction and service sectors, helping it retain the tag of the fastest growing major economy. The rupee appreciating against the dollar also fuelled the uptrend, brokers said.

Auto stocks were in demand on expectations of encouraging sales data for the May month, to be released today. Big gainers included ICICI Bank, Bajaj Auto, Maruti Suzuki, Sun Pharma, L&T, Tata Motors, Hero MotoCorp, Wipro, HDFC Ltd, TCS, Infosys, HUL and RIL, climbing up to 3.64 percent.

However, other Asian markets were mixed on fresh trade war fears after the Trump administration’s tariffs on imports from key allies. Hong Kong’s Hang Seng was up 0.26 percent and Japan’s Nikkei rose 0.24 percent in their early deals while Shanghai Composite index fell 0.33 percent. The US Dow Jones Industrial Average ended 1.02 per cent lower in yesterday’s trade. Rupee gains Rising for the third day, the rupee appreciated by 24 paise to 67.17 against the US dollar today on continued selling of the American currency by banks and exporters amid robust macroeconomic data. Data released by the CSO yesterday showed gross domestic product (GDP) growth in the January-March quarter of 2017-18 was at a seven-quarter high of 7.7 percent, helping India retain the tag of world’s fastest growing major economy. Forex dealers said besides sustained selling of the American currency by exporters as well as banks, a higher opening in the domestic equity market supported the rupee. However, the dollar’s strength against other currencies overseas capped the gains. Yesterday, the local currency had edged up by 2 paise to end at 67.41 against the American currency on stray dollar selling by banks and exporters.