Sensex, Nifty recover from budget blues as manufacturing data raise hopes
Mumbai: Stock markets recovered from the budget blues on Monday with the benchmark index Sensex closing higher by 137 points after a survey showed manufacturing activity soared to an eight-year high on new orders.
The 30-share BSE Sensex rose by 136.78 points or 0.34 per cent to settle at 39,872.31 as 18 of its components ended with gains. The recovery was broad as all BSE sectoral indices barring IT and Teck closed with gains.
The 50-share NSE Nifty gained 46.05 points or 0.39 per cent to close at 11,707.90. As many as 28 Nifty
stocks advanced, led by Asian Paints.
Markets had opened lower after suffering a major hit on Saturday as budget proposals failed to enthuse investors. Sensex dropped to a low of 39,563.07 while Nifty touched a low of 11,614.50 in early trade.
Stocks turned positive in the afternoon session after a monthly survey said the country's manufacturing sector activity climbed to a near eight-year high in January.
The IHS Markit India Manufacturing PMI rose from 52.7 in December to 55.3 in January, driven by sharp rise in new business orders amid a rebound in demand conditions that led to rise in production and hiring activity.
Asian Paints was the top gainer in the Sensex pack, rallying 6.32 per cent. Nestle India rose by 5.3 per cent, HUL by 5.06 per cent, Bajaj Auto by 4.71 per cent, IndusInd Bank by 4.29 per cent, Tata Steel by 3.06 per cent, Maruti by 2.99 per cent and PowerGrid by 2.79 per cent.
On the other hand, ITC cracked 5.09 per cent on the budget proposal to increase excise duy on cigarettes by 212-388 per cent.