Sensex rises more than 100 points

FE Team | Published: July 02, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

MUMBAI, July 1 (Reuters): The BSE Sensex rose for a third consecutive session on Tuesday as auto makers such as Maruti Suzuki India surged after stronger monthly sales, while strong foreign buying also underpinned sentiment.
Foreign institutional investors bought shares worth $214.42 million on Monday, their biggest single-day purchase since June 12, according to provisional exchange data. Overseas funds have pumped in $9.9 billion so far this year, spurring a rally that took the Nifty to a record high last month.
A firm trend from regional markets on upbeat manufacturing data from China also helped. In India, the HSBC Manufacturing Purchasing Managers' Index, compiled by Markit, advanced to 51.5 in June from 51.4 in May, expanding at the fastest pace in four months.
Investors were also seen churning portfolio and buying into stocks such as infrastructure and capital goods, where the newly elected government is likely to give more emphasis in its maiden budget on July 10, traders said.
"Market is aligning itself for the budget, which will be the next big event. We can see sector rotation. Budget is going to be focused on infrastructure, strengthening of banks and bringing out reforms in agriculture for larger growth. And those stocks related to these sectors will be in the limelight for the short-term," said Deven Choksey, managing director, KR Choksey Securities.
The benchmark BSE Sensex gained 0.4 per cent to 25,516.35 points, not far from the record high of 25,735.87 hit on June 11.
The broader Nifty ended 0.31 per cent higher at 7,634.70 points, within touch of a peak of 7,700.05 hit on June 11.
Shares in Maruti gained 5.9 per cent to a record high with the biggest single-day gain since March 18 after it reported a 33.5-per cent in monthly vehicle sales, which beat some analysts' expectations.
Mahindra and Mahindra Ltd gained 4.11 per cent and Tata Motors Ltd ended 4.52 per cent higher.
Among other gainers, shares in Hindalco Industries Ltd rose 6.73 per cent after CLSA upgraded the stock to "buy" from "sell" and raised its target price to 215 rupees from 110 rupees.
Shares in other metal companies have also surged with the BSE's metal index gaining 2.03 per cent after London copper hit its highest in nearly four months on Tuesday. Tata Steel Ltd gained 2.32 per cent while JSW Steel Ltd rose 2.64 per cent.
Among capital goods stocks, Larsen and Toubro Ltd closed 1.45 per cent higher while BHarat Heavy Electricals Ltd ended up 0.86 per cent.
However, gains were limited as technology stocks fell on profit-taking. Tata Consultancy Services ended 1.43 per cent lower after gaining 12.84 per cent in the previous month. Wipro Ltd ended down 1.5 per cent after it gained 7.9 per cent in June.