Auto stocks reboot market
Market back with the bulls buoyed by the uptrend in auto stocks and recovery in banking and finance stocks. The BSE Sensex was at 35,749.61, up nearly 600 points.
Hero Motocorp was the top stock beaming ahead with 7.00 per cent gains. The stock hit its 52-week high during the day. The stock opened at Rs. 3,051.00 per share and hit an intraday high of 3254.55. The uptick in this counter is fuelled by an expected pick up in rural demand.
The BSE Sensex was at 35,691.07, up by 541.06 or 1.54 per cent at 14:48 hour, in the post-lunch session. Hero Motocorp is a BSE Sensex heavyweight and contributed nearly 28.67 points to the index gains when it was trading at Rs. 3,253.00 per share, up by 7.17 per cent on Wednesday. Closely following it was another two-wheeler major Bajaj Auto was trading at Rs. 2,851.00 per share, up by 3.83 per cent. Passenger car major Maruti Suzuki also was trading higher at Rs. 7,503.65 per share, up by 2.65 per cent and contributed 23.94 points to the index gains. Another auto stock that topped the chart was Tata Motors.
Meanwhile the top index heavyweights the HDFC twins supported the index gains by moving up by more than 1 per cent. HDFC contributed nearly 54.60 points to the index gain and was at Rs. 1,938.75 per share, up by 1.75 per cent and HDFCBANK contributed nearly 47.43 to the index gain and was at Rs. 2,083.75 per share, up by 1.11 per cent.
If we have a look at the top gainer on the BSE Sensex it was more a reflection of investors faith in the Indian economy. The top gainers were Hero Motocorp, Yes Bank, Airtel, Adani Ports, Tata Motors and Bajaj-Auto.
With the appointment of Shaktikant Das as the Governor of RBI, the government has weeded out the uncertainty revolving around the Indian economic policy and the banking system. The market seems to have read between the lines and cheered the appoint of the new Governor
As far as the banking and finance space is concerned, the most tracked index Bank Nifty was trading at 26,608.85, up by 445.45 points or 1.70 per cent, with all its constituents trading in the green. Even in terms of the broader market, the Nifty Mid-cap was up by 2.48 per cent or Nifty Small-cap 2.88 per cent, representing a broad-based buying in the market.