6:00 PM Mumbai, India – Sensex jumped to a 7-week high following a sharp jump in stocks across Asia on the rising expectations that the U.S. economy is strong enough to withstand first rate hike in ten years. Auto stocks rallied. Punj Lloyd secured two contracts from NTPC.
Stocks in Mumbai closed higher following an Asia-wide rally after more U.S. officials joined the chorus supporting the case for a rate increase for the first time after a decade.
The rate increase talk also supported the case that the U.S. economy is strong enough to withstand rising rates, but rates are expected to rise gradually.
Automotive stocks jumped on the expectations that the domestic auto sales are running ahead of expectations on lower interest rates and a sharp decline in fuel prices.
October auto sales jumped 20% to 327,225 units and sales in November so far are running ahead of expectations across the industry.
Bajaj Auto Ltd jumped 3.1%, Maruti Suzuki India Ltd increased 1.8%, Eicher Motors Ltd advanced 1.2%, Ashok Leyland Ltd added 1%, Mahindra and Mahindra Ltd edged up 0.8% and Tata Motors Ltd rose 0.6%.
Rupee strengthened 12 paisa to 66.17 against one U.S. dollar.
The Sensex Index jumped 359.80 or 1.4% to close at 25,841.92. The CNX Nifty advanced 110.95 or 1.4% to 7,842.7.
Gainers & Losers
Aurobindo Pharma Limited
edged up 0.2% to ₹817.35 after the natural and ayurvedic medicine maker received an approval from the shareholder to raise up to ₹3,974 crore or $600 million.
increased 1.8% to ₹767 after the software developer entered into a strategic partnership with the U.S.-based GAINSystems, Inc.
Punj Lloyd Limited
soared 5.2% to ₹25.30 after the construction services provider secured two rural electrification contracts from NTPC.
Religare Enterprises Limited
decreased 1.6% ₹272.70 after the financial services provider plans to sell its 51% stake in Religare Invesco Asset Management Co.
Tata Power Company Limited
increased 1.3% to ₹66.70 after the power producer implemented distribution management system in Mumbai.
TVS Motor Company Limited
rose 0.8% to ₹2,591.35 after the largest motorcycle maker said the company sold over 1 million units in festive season.