Key indices hit fresh record high in mid-morning trade. At 11:28 IST, the barometer index, the S&P BSE Sensex rose 127.71 points or 0.41% at 31,265.30. The Nifty 50 index advanced 32.50 points or 0.34% at 9,648.60.
The market sentiment was boosted by hopes of good southwest monsoon rains. Positive global cues also lifted investors' spirit.
The S&P BSE Mid-Cap index rose 0.65%, outperforming the Sensex. The S&P BSE Small-Cap index advanced 0.37%, underperforming the Sensex.
The breadth, indicating the overall health of the market, was positive. On the BSE, 1,363 shares rose and 947 shares declined. A total of 149 shares were unchanged.
Auto stocks nudged higher. Eicher Motors (up 1.37%) and Ashok Leyland (up 0.99%) gained. Maruti Suzuki India (down 0.01%) edged lower.
Tata Motors was up 1.32%. The company said that total sales of Tata Motors passenger and commercial vehicles declined 4% to 38,361 units in May 2017 over May 2016. Domestic sales of Tata Motors passenger and commercial vehicles fell 3% to 34,461 units in May 2017 over May 2016. Exports declined 12% to 3,900 units. The announcement was made during market hours today, 2 June 2017.
Bajaj Auto was down 0.94% after the company's total sales declined 10% to 3.13 lakh units in May 2017 over May 2016. Domestic sales fell 15% to 1.74 lakh units. Exports declined 3% to 1.39 lakh units. The announcement was made during market hours today, 2 June 2017.
Hero MotoCorp (HMCL) advanced 1.68% after the company said its total two-wheeler sales grew 8.7% to 6.33 lakh units in May 2017 over May 2016. The announcement was made after market hours yesterday, 1 June 2017.
With monsoon already hitting some parts of the country, and forecast of normal rains this year, the industry is expecting a boost in demand and consumption in the rural markets. Having lined up a slew of new launches across various segments, the company is confident of maintaining the growth trajectory in the coming months.
Meanwhile, HMCL commenced commercial production yesterday, 1 June 2017, in the manufacturing facility at its subsidiary HMCL Niloy Bangladesh. This plant, located at Jessore in Bangladesh, has an installed capacity of 1.50 lakh vehicles per annum.
TVS Motor Company rose 3.11% after the company reported 16% rise in total sales to 2.82 lakh units in May 2017 over May 2016. The announcement was made after market hours yesterday, 1 June 2017.
Cement stocks gained. Shree Cement (up 0.93%), Grasim Industries (up 0.79%), Ambuja Cements (up 0.67%) and UltraTech Cement (up 0.4%) edged higher. ACC (down 0.17%) edged lower.
Cadila Healthcare jumped 4.97% after the company said that it has received final approval from the United States Food & Drug Administration (USFDA) to market Levofloxacin Injection, 500mg/20mL and 750 mg/30mL (25 mg/mL). Levofloxacin is used in the treatment of bacterial infections and will be produced at the group's formulations manufacturing facility at Moraiya, Ahmedabad, Gujarat.
The approval marks the beginning of the approval process for filings made from the Moraiya manufacturing plant after successfully completing the USFDA audit from 6 to 15 February 2017 with zero 483 observations.
The India Meteorological Department (IMD) in its press release today, 2 June 2017 said that conditions are favourable for further advance of southwest monsoon into remaining parts of south Arabian Sea, Lakshadweep area and Kerala, some parts of central Arabian Sea, coastal & south interior Karnataka, some more parts of Tamilnadu, southwest, west central & east central & east central Bay of Bengal, most parts of northeast Bay of Bengal and some more parts of northeastern states during next 2 to 3 days.
Overseas, Asian stocks edged higher buoyed by overnight gains on Wall Street. US equities closed higher yesterday, 1 June 2017, as Wall Street got ready for the release of the monthly jobs report. The US government's nonfarm payrolls report is set for release today, 2 June 2017.
Meanwhile, data released by the private payroll firm ADP yesterday, 1 June 2017 showed that private US companies hired at a blistering pace in May, accelerating from the pause in April. Non-farm private employment surged 253,000 in May.
An improving labor market will likely support investors' expectations that the Federal Reserve will raise interest rates further in the coming months.
Among other global news, US President Donald Trump announced yesterday, 1 June 2017 that he will withdraw the US from the Paris climate pact, saying it favours other nations at the expense of American workers, while vowing to pursue a better deal.
The move reportedly drew an immediate condemnation from the leaders of France, Germany and Italy, who issued a statement insisting that the agreement was irreversible and cannot be renegotiated.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
