Sensex Ends At Record High, Nifty Settles At 10,115; Auto Stocks Outperform

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Indian equity indices extended their record breaking rally to a second straight day as auto, metal and IT stocks gained. The BSE Sensex closed with 60.23 points gains at 32,575.17 on Tuesday, while the NSE benchmark Nifty settled 37.55 points or 0.37 per cent higher at a record closing high of 10,114.65. The Sensex touched an all-time high of 32,632.02 during the session while the Nifty hit a record high of 10,128.60. Gains in the markets were led by auto stocks, which rose on strong sales number for the month of July. The auto sub-index of NSE, Nifty Auto, rose 1.53 per cent, led by gains in Eicher Motors, Hero MotoCorp, Mahindra & Mahindra and Maruti Suzuki.

Eicher Motors shares surged 5 per cent to be the top gainer in Nifty after the automaker reported a 21 per cent jump in July sales. Meanwhile, Maruti Suzuki rose as much as 2.2 per cent to touch an all-time high, after reporting a 21 per cent increase in sales.

Automakers have increased production to fill up the gap in inventory prior to the launch of the Goods and Services Tax (GST) and will therefore ship more vehicles to dealers, said Mahantesh Marilinga, senior research analyst at Finquest Securities.

Other than auto, IT and metal stocks also gained today. Shares of Tech Mahindra rose as much as 7.3 per cent before settling 4.12 per cent higher, a day after the company reported a better-than-expected rise in quarterly profit, helped by new clients for its digital services business. The IT sub-index rose 0.42 per cent while the Nifty Metal sub-index added 0.94 per cent. Hindalco Industries was the top gainer in the metals sub-index, up 2.8 per cent.

However, banking shares witnessed profit-booking amid caution ahead of a widely-anticipated interest rate cut at the Reserve Bank of India’s policy meeting on Wednesday. Bank of Baroda was the top Nifty loser, down 1.53 per cent. SBI, Canara Bank and PNB were the other banking losers, falling between 1 per cent and 2 per cent.