Sensex closes above 17600 on European cues; auto stocks gain

Markets closed on a buoyant note today, as both the Sensex and the Niftu gained 1.3 percent. The BSE Sensex closed at 17,618, up 226 points and up 207 points from the day’s low and highest since 16 March. The S&P CNX Nifty also gained 70 points to close at 5,345.

The market breadth was positive. On the BSE, 1,760 stocks advanced while 1,157 declined. All the 13 BSE Sectoral indices closed in the green led by a more than one percent gain in autos, fmcg and capital goods.

In the 30-share Sensex pack, 28 stocks advanced led by Hindalco (2.74 percent) and Maruti Suzuki (2.72 percent), Tata Motors (2.58 percent).

The sharp upward movement in the markets was mainly because of the rally in European stocks, which rose after Eurozone finance ministers approved a deal to rescue Spanish lenders.

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European shares inched up on Tuesday after the region’s finance ministers made limited progress on measures to help embattled Spain, but the euro and commodities fell as signs of a sharp slowdown in China fueled anxiety about the global economy.

Foreign investors are also bullish on India if one goes by their investments. FIIs purchased shares worth a net Rs 252.99 crore on 9 July 2012, as per stock exchanges figures. They have also bought shares worth a net Rs 1903.70 from the secondary equity markets during four trading sessions from 3-6 July.

Stock specific news:

•Alstom India gained 2 percent after it informed that it has secured an order worth Rs26 from Tata Projects for supply of coal grinding system for NMDC’s Nagarnar blast furnace project.

•Induslnd Bank shares closed flat post the company’s 31 percent increase in net profit on a 40.14 percent increase in interest earned for the June quarter.

•HMT gained 16 percent over news that the govt is mulling Rs 993 crore revival plan for the company.

•Shares of auto companies rose after the Society for Indian Automobile Manufacturers said car sales in the country rose about 8 percent in June.

(With inputs from Reuters)