Auto, realty stocks gain

Key benchmark indices continued to trade in a small range in positive terrain in morning trade. At 10:20 IST, the barometer index, the S&P BSE Sensex, was up 53.92 points or 0.17% at 32,568.86. The Nifty 50 index was up 19.25 points or 0.19% at 10,096.35. Firmness in Asian stocks supported gains on the bourses.

The S&P BSE Mid-Cap index rose 0.51%. The S&P BSE Small-Cap index gained 0.19%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,116 shares rose and 903 shares fell. A total of 119 shares were unchanged.

Auto stocks gained ahead of the Reserve Bank of India's policy meet announcement tomorrow, 2 August 2017. Mahindra & Mahindra (M&M) (up 1.28%), Ashok Leyland (up 0.05%), Maruti Suzuki India (up 0.74%), Eicher Motors (up 0.91%), Bajaj Auto (up 0.49%), Hero MotoCorp (up 0.93%), Tata Motors (up 0.39%) and TVS Motor Company (up 1.43%) gained. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.

Realty stocks also rose ahead of the Reserve Bank of India's policy meet announcement tomorrow, 2 August 2017. DLF (up 0.41%), Indiabulls Real Estate (up 0.04%), Unitech (up 1.61%), NBCC (up 0.86%), Godrej Properties (up 0.26%), Housing Development & Infrastructure (HDIL) (up 0.17%), and Oberoi Realty (up 0.19%) edged higher. D B Realty fell 0.45%. Purchases of both residential and commercial property are largely driven by finance.

Sobha rose 1.01% after the company said its board will meet on 4 August 2017 to consider a proposal for buyback of equity shares of the company, for an aggregate amount up to Rs 62 crore. The announcement was made after market hours yesterday, 31 July 2017.

Vascon Engineers rose 2.54% after the company said that it has received letter of award from Transcon Sheth Creators, a domestic entity for the work of civil construction, finishing, electrical and fire fighting work of residential building no 3 and 4 (ground plus 23 floors) in Malad (West), Mumbai amounting to Rs 80.41 crore.

The work has to be completed within 24 months from the date of receipt of work order. The announcement was made after market hours yesterday, 31 July 2017.

On the macroeconomic data front, Markit Economics will unveil the result of a monthly survey on the performance of India's manufacturing sector in July 2017 at 10:30 IST today, 1 August 2017. Nikkei India Manufacturing purchasing managers index (PMI) dropped to four-month low of 50.9 in June 2017

The combined index of eight core industries, comprising 40.27% of the weight of items included in the index of industrial production (IIP) rose 0.4% in June 2017 over June 2016. Its cumulative growth during April to June, 2017-18 was 2.4%.

GDP growth rate of India will remain in the range of 6.5-7.5% over the next 12-18 months and GST will support the momentum for faster growth, reported a study conducted by a leading research agency, Moody's. According to the US-based agency estimates, the economy will grow 7.5% in 2016-17 and 7.7% in 2017-18. While it forecasted that the economic growth will gradually increase to around 8% over the next 3-4 years.

Overseas, most Asian stocks gained on rising confidence in global growth. Growth in China's manufacturing quickened in July, a private survey showed, as output and new orders rose at the fastest pace since February on strong export sales. The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) rose to 51.1 in July, above the 50-point mark that separates growth from contraction, and well ahead of the 50.4 in June.

In US, the Dow Jones Industrials Average finished at an all-time high yesterday, 31 July 2017, but the broader market's gains were hobbled by losses in the technology sector.

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