Indian stocks end at three-month high on car rally

People walk past the Bombay Stock Exchange (BSE) building in Mumbai, India, March 9, 2020. REUTERS/Francis Mascarenhas

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BENGALURU, Aug 1 (Reuters) – Indian stocks started August on a positive note on Monday, with benchmarks hitting a three-month high, led by a rally in auto stocks on strong monthly data on sales.

At the close of trading, the NSE Nifty 50 Index (.NSEI) rose 1.06% to 17,340.05 and the S&P BSE Sensex (.BSESN) climbed 0.95% to 58,115.50. Both indexes hit their highest level since April, after recording their best month since November 2020 in the previous session.

Sentiment is bolstered by positive global signals, with foreign investors buying in July and falling oil prices, said Anita Gandhi, full-time director at Arihant Capital Markets.

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Foreign investors bought $618.05 million net worth of Indian stocks in July, marking the first monthly inflow of funds since September 2021, according to Refinitiv data.

Meanwhile, Indian factory activity grew at its fastest pace in eight months in July, driven by growth in orders and output as demand continued to improve, a private survey showed. Read more

Oil prices fell on Monday after weak July manufacturing data from China and Japan weighed on demand prospects, as investors awaited this week’s meeting of OPEC and US officials. other major producers on supply adjustments.

In domestic trading, Tata Motors Ltd (TAMO.NS) and Mahindra and Mahindra Ltd (MAHM.NS) were the main gainers in the Nifty 50 index, climbing 6.6% and 6.3% respectively.

Tata Motors reported a 52% increase in total domestic sales in July from a year ago, and Mahindra and Mahindra said domestic passenger vehicle sales rose 33% last month. (https://bit.ly/3zq0AO7)(https://bit.ly/3cZPyId)

The Nifty auto sub-index (.NIFTYAUTO) rose 3.3% to a record high and was the best performer.

Among other moves in individual stocks, agrochemicals maker UPL Ltd (UPLL.NS) climbed 3.5% after posting a 29.5% jump in quarterly net profit. (https://bit.ly/3OPQjRl)

Globally, stocks rose to seven-week highs on Monday, boosted by recent strong corporate earnings and easing concerns about sharp interest rate hikes.

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Reporting by Rama Venkat in Bengaluru and additional reporting by Gaurav Dogra; Editing by Sherry Jacob-Phillips and Dhanya Ann Thoppil

Our standards: The Thomson Reuters Trust Principles.

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