Nifty ends above 9,950, up 1% for the week; Sensex settles 161 pts higher
Benchmark indices rose on Friday and gaining for a third straight week after much weaker-than-expected economic growth data raised hopes the central bank would cut interest rates at its next policy meeting in October.
India’s gross domestic product (GDP) growth slid to a three-year low of 5.7% in the quarter ended June, a marked slowdown from a 6.1% growth in the previous quarter.
However, India’s factory activity unexpectedly expanded in August, snapping back from a contraction the previous month, as disruptions stemming from confusion over GST eased.
Broader markets outperformed the benchmark indices with BSE Midcap and BSE Smallcap up 0.9% and 0.8% respectively.
Shares of Gravita India touched 52-week high of Rs 134.65, rising 11% intraday on the back of strong Q1 numbers.
Dr. Reddy’s Labs was the biggest gainer among Sensex 30 and Nifty 50 stocks, rising nearly 10 percent after settlement agreement with US-based Vivus to resolve a long-pending patent litigation related to anti-obesity pill (or weight management capsules) Qsymia.
The rally was also spilled over to other pharma stocks – Aurobindo Pharma surged 4.5 percent followed by Sun Pharma and Lupin with over a percent gain. Nifty Healthcare index gained 2.4 percent.
Drug firm Strides Shasun gains 2% after the pharma firm received an Establishment Inspection Report (EIR) from the US health regulator for its formulations facility at Bengaluru.
Auto sector hogged limelight today as the Nifty Auto index gained 2 percent after better-than-expected sales data from all major companies for August.
Tata Motors (stock up 3.74 percent) showed 14 percent sales growth in August YoY and Ashok Leyland (5.4 percent) registered a 25 percent growth. Bajaj Auto (stock up 4 percent) reported 3 percent sales growth while Maruti Suzuki (1.43 percent) registered healthy 24 percent growth and Eicher Motors’ (1 percent) sales increased 22 percent compared with year-ago month.
The Nifty Metal index also gained 2 percent due to rally in global steel prices. Hindalco Industries, Nalco, Jindal Steel, Hindustan Zinc, SAIL, Tata Steel and Vedanta rallied 2-4 percent.
Reliance Industries closed above Rs 1,600 for the first time in 3 weeks, up 1 percent at Rs 1,609.35.