Car sales data drive Sensex up 86 points in early trade

News

Mumbai, August 3: The benchmark BSE Sensex rose over 86 points to 28,201.48 in early trade today following sustained buying by funds and investors after major car makers posted healthy sales growth in July even as other Asian markets turned weak in their opening trade.

Rising for the fourth straight session, the 30-share index gained 86.92 points, or 0.30 per cent, to trade at 28,201.48, with auto, consumer durables, banking and power sectors leading the rally.

The gauge had spurted 655.33 points in the past three straight sessions, largely supported by the government's plans to infuse fresh capital into state-owned lenders by September and EPFO getting ready to invest in equity markets.

NSE Nifty was trading higher by 17.95 points, or 0.21 per cent, at 8,550.80.

Sentiment remained firm as buying activity gathered momentum on expectations that liquidity may pick up as EPFO will start investing in the equity market this week, brokers said.

Maruti Suzuki climbed 1.69 per cent to Rs 4,403.40 after the company said its domestic sales increased 22.5 per cent last month to 1,10,405 units as against 90,093 in July last year.

Tata Motors rose 0.87 per cent to Rs 387.70 after it reported 1.32 per cent increase in total sales in July.

Besides, expectations of a rate cut by the Reserve Bank of India at its policy meet tomorrow triggered the flow, they said.

However, caution prevailed on disappointing earnings by L&T and a weak trend at other Asian markets.

China manufacturing activity showed a drop to a two-year low in July.

In the Asian region, Shanghai was down 1.71 per cent and Hong Kong's Hang Seng shed 1.57 per cent while Japan's Nikkei lost 0.22 per cent in early trade today .

The US Dow Jones Industrial Average ended 0.32 per cent down in Friday's trade.

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