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Improved manufacturing data, auto sales lift Sensex over 600 points
Mumbai, October 1, 2020
The Indian stock market surged on Thursday with the BSE Sensex gaining 629 points on the back of improved manufacturing PMI data and automobile sales.
A positive trend in the global markets also supported the domestic indices.
Healthy buying was witnessed in finance and banking stocks. The S&P BSE Banking index closed 3.73 per cent higher and the Finance index was up 3.03 per cent.
Investor sentiment was boosted after the IHS Markit India Manufacturing Purchasing Managers' Index (PMI) report, released on Thursday, cited a renewed expansion in export sales and input stocks as well as an improvement in business confidence during September.
Consequently, reading of the headline seasonally adjusted IHS Markit India Manufacturing PMI showed a rise from 52 in August to 56.8 in September. The latest reading was the highest in over eight-and-a-half years.
Further, auto sales numbers for the month of September, which came in on Thursday, also were largely higher on a year on year, which too boosted the sentiments.
Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services, said: "The global cues were positive on the back of better-than-expected private sector jobs data and rising hopes for additional stimulus packages. Further positive progress towards a possible coronavirus treatment by Regeneron Pharma and promising results from Moderna's coronavirus vaccine trials also cheered the markets."
On the domestic front, he noted that positive global cues, another phase of "unlock" and a host of positive macro data lifted the sentiments and decent auto sales numbers supported the indices.
The BSE Sensex closed at 38,697.05, higher by 629.12 points, or 1.65 per cent, from the previous close of 38,067.93.
It had opened at 38,410.20 and touched an intra-day high of 38,738.89 and a low of 38,410.20.
The Nifty50 on the National Stock Exchange closed at 11,416.95, higher by 169.40 points, or 1.51 per cent, from its previous close.