Sensex gains 94 points, Maruti slumps 8% on Manesar unrest

The BSE Sensex rose by 0.55 percent while the S&P CNX Nifty gained 0.51 percent in today’s trade. The Sensex, the baromter of the Indian economy, closed up 94 points to 17,278 while the Nifty closed above the 5,200 mark at 5,242.7. The market breadth was positive. On the BSE, 1,514 stocks advanced while 1,299 declined.

Among sectoral indices, IT was the biggest gainer as it rose by 1.75 percent led by consumer durables (1.38 percent) and oil and gas (1.24 percent). The worst performer was the auto index which fell by 0.47 percent. This is mostly because of the 8.74 percent in the stock price of Maruti to Rs 1,117 per share. This was due to clash between between workers and the managerial staff at the Maruti Suzuki India’s Manesar plant. This was Maruti’s biggest daily percentage fall since July 26, 2010, after halting production at a factory in north India because of labour unrest.

Reliance Industries rose 1.8 percent ahead of its April-June quarter earnings on Friday, helped after Nomura upgraded the stock to ‘outperform’, citing valuations and benefits from a weak currency.

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Capital goods stocks were also in demand after Bhel gained on reports the Cabinet is likely to discuss a roposal to impose 21 percent duty on imported power equipments.

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Telecom stocks traded lower after the empowered group of ministers who are looking into the rules that will govern the upcoming auction of second-generation (2G) telecom spectrum, has reportedly suggested stricter roll-out obligations for successful bidders.

Meanwhile foreign investors continued their buying spree. Foreign institutional investors (FIIs) bought shares worth Rs 276.40 crore on 18 July. They have already bought shares worth Rs 4644.50 crore from the secondary equity markets during 3 July - 17 July 2012.

The day also witnessed a lot of results today from Kotak Mahindra Bank to Hero Moto Corp. Tomorrow is an important day for results as Reliance Inds will be announcing its June quarter earnings followed by Crompton Greaves, JSW Energy, Karnataka Bank, Asian Paints.