Indian shares rise on boost from auto, energy stocks - Reuters

The Bombay Stock Exchange (BSE) building is pictured next to a police van in Mumbai, India, August 24, 2015. REUTERS/Danish Siddiqui/File Photo

BENGALURU, Aug 2 (Reuters) - Indian shares rose on Monday, led by auto stocks as monthly data showed a recovery in July sales after a second wave of COVID-19 cases had dented demand, while a pick-up in fuel demand lifted energy companies.

By 0452 GMT, the blue-chip NSE Nifty 50 index (.NSEI) climbed 0.6% to 15,857 and the benchmark S&P BSE Sensex (.BSESN) rose 0.56% to 52,879.31.

"The derivative pressure that was there last week is gone and (corporate) results show that except for banking, growth is maintained and margins are good. That's something the market is liking very much," said AK Prabhakar, head of research at IDBI Capital in Mumbai.

"Maruti (July) sales are good ... Two-wheeler exports have been very good, which needs to be looked at. If the unlocking plays out well, Maruti and export-oriented two-wheeler stocks should really do good," Prabhakar said.

India's top car maker Maruti Ltd (MRTI.NS) reported a 50% jump in July sales on Sunday, compared with a year ago, while Jaguar Land Rover parent Tata Motors Ltd (TAMO.NS) posted a 92% surge in total domestic sales.

Bajaj Auto Ltd (BAJA.NS) said on Monday its July sales jumped 44% against a year ago, with exports surging 108%. Eicher Motors (EICH.NS) posted a 97% jump in exports. FWN2P706N

The Nifty auto index (.NIFTYAUTO) rose 1%, led by more than 1%-2% gains in Maruti and Tata Motors, Mahindra and Mahindra Ltd (MAHM.NS), Eicher, and Ashok Leyland (ASOK.NS)

Meanwhile, India's energy index (.NIFTYENR) added 0.9% after preliminary sales data showed that the country's daily gasoline consumption exceeded pre-pandemic levels in June as states relaxed COVID-19-related lockdowns. read more

Oil marketing companies Indian Oil Corp (IOC.NS), Hindustan Petroleum Corp (HPCL.NS) and Bharat Petroleum Corp (BPCL.NS) rose between 1.2% and 1.7%.

In broader markets, Asian shares were trying to stabilize, though Beijing's regulatory crackdown continued to reverberate amid disappointing economic news.

Reporting by Nallur Sethuraman in Bengaluru; editing by Uttaresh.V

Our Standards: The Thomson Reuters Trust Principles.

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