Indian shares end higher as energy, auto stocks gain

  • 8/2/2021
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BENGALURU (Reuters) - Indian shares closed higher on Monday, led by energy companies on a pickup in fuel demand, while a recovery in July sales lifted auto stocks after a second wave of COVID-19 cases had dented demand. The blue-chip NSE Nifty 50 index ended up 0.77% at 15,885.15 and the benchmark S&P BSE Sensex rose 0.69% to 52,950.63. India"s finance ministry reported on Sunday that gross goods and services tax (GST) revenue collected in July was 1.16 trillion rupees, up 33% from a year earlier. (bit.ly/2V8718K) “Sentiment got a boost as GST collection recovered to a three-month high in July, exceeding 1.1 trillion rupees, as economic activity resumed,” Gaurav Garg, head of research, CapitalVia Global Research, said in a note. Energy stocks rose 1.6% after preliminary sales data showed the country’s daily gasoline consumption exceeded pre-pandemic levels in June as states relaxed pandemic-related lockdowns. Oil marketing companies Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp rose between 2.3% and 2.8%. Heavyweight Reliance Industries Ltd gained 1.8%. The Nifty auto index rose 1.3%, led by Maruti Ltd, Tata Motors, Mahindra and Mahindra Ltd, Eicher Motors, and Ashok Leyland - all up between 1.4% and 2.9%. India’s top car maker, Maruti, reported a 50% jump in July sales on Sunday, compared with a year ago, while Jaguar Land Rover-parent Tata Motors posted a 92% surge in total domestic sales. Bajaj Auto Ltd said on Monday its July sales jumped 44% against a year ago, with exports more than doubling. Eicher Motors posted a 97% jump in exports. [FWN2P706N] Shares of railway ticketing, catering and tourism services provider IRCTC surged as much as 7.7% to a record high after the state-run company said it would consider a stock split. In broader markets, European shares picked up in early trading after a recovery in Asian equities, with risk appetite boosted by recent strong earnings and a U.S. infrastructure bill. [MKTS/GLOB] Reporting by Nallur Sethuraman in Bengaluru; Editing by Subhranshu Sahu Our Standards: The Thomson Reuters Trust Principles.

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