Market opens on a firm note on positive Asian stocks

Domestic stocks saw a gap-up opening tracking positive Asian stocks as trading resumed after a long weekend. At 9:27 IST, the barometer index, the S&P BSE Sensex, was up 185.38 points or 0.59% at 31,469.10. The Nifty 50 index was up 64.70 points or 0.66% at 9,853.30. Stock markets were closed on Monday, 2 October 2017 on account of Mahatma Gandhi Jayanti.

The S&P BSE Mid-Cap index was up 0.85%. The S&P BSE Small-Cap index was up 0.81%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1211 shares rose and 324 shares fell. A total of 46 shares were unchanged.

Overseas, Asian stocks were trading higher after strong factory data and the prospect of American tax cuts boosted confidence in the global economy. Markets in China and South Korea remain shut. US equities closed at record highs yesterday, 2 September 2017 as Wall Street kicked off the fourth quarter on a high note.

In US economic data, the closely watched ISM manufacturing index was at 60.8 in September, representing the highest level for the economic reading since 2004 and up from 58.8% in August. A reading of 50 indicates expansion. A separate reading on manufacturing activity from IHS Markit came in at 53.1 for the same month, compared with 52.8 in the prior month.

Back home, Tata Motors surged 4.91% after domestic passenger and commercial vehicle sales rose 25% to 53,965 units in September 2017 over September 2016. The announcement was made on Sunday, 1 October 2017.

Maruti Suzuki India fell 0.82%. The company said its total sales rose 9.3% to 1.63 lakh units in September 2017 over September 2016. The announcement was made on Sunday, 1 October 2017.

Eicher Motors rose 1.09% after the company said its total Royal Enfield sales rose 22% to 70,431 units in September 2017 over September 2016. The announcement was made on Sunday, 1 October 2017.

Bajaj Auto gained 1.97% after the company said its total sales rose 14% to 4.28 lakh units in September 2017 over September 2016. The announcement was made on Monday, 2 October 2017.

Hindustan Unilever (HUL) rose 0.71% after the company said it signed an agreement for divestment of its 50% shareholding in Kimberly-Clark Lever (KCL) in favour of Kimberly-Clark Corporation (KCC), USA. This decision is in line with the company's objective to focus on its core business. Accordingly, KCL shall cease to be a joint venture of the company. The company shall work with KCC to ensure a smooth transition for the business. The announcement was made after market hours on Friday, 29 September 2017.

Power Grid Corporation of India fell 0.81%. The company said it entered into a term loan agreement for Rs 3270 crore with ICICI Bank on 29 September 2017 for the purpose of funding of capital expenditure for expansion, renovation and setting of various on-going and new transmission projects in Power Grid Corporation of India and in identified special purpose vehicles (SPVs) of Power Grid Corporation of India. The announcement was made after market hours on Friday, 29 September 2017.

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