Domestic stocks opened on a firm note as Asian stocks and US index futures jumped following a cease-fire on tariffs between Beijing and Washington over the weekend. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 183.47 points or 0.51% at 36,377.77. The Nifty 50 index was up 46.15 points or 0.42% at 10,922.90.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 800 shares rose and 417 shares fell. A total of 67 shares were unchanged.
On the macro front, India's gross domestic product (GDP) rose 7.1% in July-September, down from 8.2% in the previous quarter though it still marked a comforting uptick compared to the previous year's 6.3% reading in the same quarter. The manufacturing sector expanded 7.4% following 13.5% surge in the previous quarter while the agriculture sector grew 3.8% from 5.3% in the previous quarter. Trade, Hotel, Transport, Communication &Services related to Broadcasting rose 6.80%, almost matching the growth in previous quarter. Financial, Real Estate & Professional Services expanded 6.30%, easing slightly from a 6.52% in previous quarter.
The combined Index of Eight Core Industries stood at 134.8 in October, 2018, which was 4.8% higher as compared to the index of October, 2017. Its cumulative growth during April to October, 2018-19 was 5.4%. The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).
Overseas, Asian stocks and US index futures jumped following a cease-fire on tariffs between Beijing and Washington at the Group of 20 meeting in Argentina over the weekend. Trading in US index futures indicated that the Dow could surge 485 points at the opening bell today, 3 December 2018.
US stocks ended higher Friday, as investors turned positive on the outlook for trade ahead of a meeting between the American and Chinese presidents.
President Donald Trump and Chinese President Xi Jinping approved the deal on Saturday in Buenos Aires. It offers Beijing a reprieve from a planned increase in tariffs, scheduled for 1 January 2019, on $200 billion in Chinese goods exports to the US Tariffs were scheduled to rise to 25% from 10%. The postponement relies on progress in talks that both sides aim to complete in the next 90 days covering broader issues, including intellectual property protection.
On the data front, the MNI Chicago business barometer jumped 8 points to 66.4 in November to a 4 year high, ending a streak of three straight declines. The survey is often seen as a bellwether for the broader US economy.
Tata Motors shed 0.03%. Tata Motors reported a drop in November sales. The sales performance of Tata Motors commercial and passenger vehicles business in the domestic market, for the first time witnessed a drop of 4% at 50,470 units in November 2018 as against 52,464 units in November 2017, due to low consumer sentiments as a result of liquidity crisis in the industry, higher interest rates and rising fuel costs. The company said it will continue to focus on aggressive sales enhancement and provide better service to its customers in these challenging times. The announcement was made on Saturday, 1 December 2018.
Mahindra & Mahindra (M&M) fell 0.59%. M&M said its auto sales rose 17% to 45,101 units in November 2018 over November 2017. The announcement was made on Saturday, 1 December 2018.
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