After a firm start on the back of a surge in global markets following the U.S. lawmakers agreeing on a deal to solve the fiscal cliff crisis, the Indian stock market gained further ground in positive territory this morning thanks to sustained buying in several front line stocks.
An encouraging report on the country's manufacturing activity in December is aiding sentiment to a significant extent.
The Sensex is now up 172 points or 0.87% at 19,586.62. Following the impressive rise in values of blue chip stocks, the Nifty sped past the magical 6000 mark for the first time since January 2011. The index is currently up 54.95 points or 0.9% at 6005.80.
According to a survey, India's manufacturing activity surged to a six-month high in December, boosted by strong factory output and a spike in new orders, both of which hit their highest levels since June. The HSBC Markit India Manufacturing PMI, which gauges the business activity of India's factories but not its utilities, jumped to 54.7 in December from 53.7 in November, its biggest monthly rise since January 2012.
In the currency market, the rupee rose to 54.31 against the U.S. dollar in early trades, gaining 37 paise in the process. A firm start in the stock market and the euro's surge against the greenback aided the rupee's upmove. On Tuesday, the partially convertible Indian currency had ended at 54.68 against the U.S. dollar, recording a gain of 31 paise.
Automobile stocks Bajaj Auto and Hero Motocorp hit new yearly highs today, buoyed by fairly impressive sales numbers for December 2012. While Bajaj Auto is trading higher by 1.8%, Hero Motocorp is up with a gain of 1.5% at present.
Bajaj Auto has reported that its motorcycle and commercial vehicle sales rose 13% and 9% respectively last month over December 2011. Even the consolidated sale figure and export figure is 13% and 5% higher, the company said. Bajaj Auto is trading
Hero Motocorp has stated that it sold 65,582 commercial and passenger vehicles (including exports) during December. The company had reported total sales of 66,500 units in November, which was 13.43% less than total sales during the same month a year ago. Cumulative sales (including exports) for the company for the current fiscal were 613,750 numbers against 626,770 numbers in previous fiscal.
Jaiprakash Associates, Punjab National Bank, Sesa Goa, Axis Bank, Kotak Bank, IDFC, Maruti Suzuki, Jindal Steel & Power, HDFC, GAIL India, Ambuja Cements, Siemens, Hindalco, Cipla, Larsen & Toubro and Reliance Industries are up 1.5% - 3%.
BHEL is trading 2.5% up following the government imposing a 35% safeguard duty on electrical insulators imported from China. “The safeguard duty would be for a period of two years, 35% for first year and 25% in subsequent year, according to the revenue department,” according to reports.