The Mint Report for 02 August 2010

The Mint Report for 02 August 2010

India’s biggest car company, Maruti Suzuki sold more than 90,000, an increase of 33%. Driving those sales were the Eeco and the WagonR.

Among other car companies, Hyundai’s domestic sales shot up 24% to nearly 29,000 units. And Mahindra and Mahindra’s sales of utility and commercial vehicles grew 20% to about 26,000.

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In motorcycles, market leader Hero Honda’s sold 427,000 two-wheelers. And Bajaj Auto came close to the 279,000 mark. Analysts have told Mint the good times are likely to continue in for auto makers in August with festivals like Onam and Rakhi coming up. Auto sales are usually slower in the monsoon season, but strong economic growth may have compensated for rains this year.

It’s been a rainy July. The met department says monsoons were thee percent above normal last month. Heavy rains that started in the third week of July erased below-normal readings from earlier in the season. The monsoon is expected to help drive down India’s food inflation by increasing the output of crops like sugarcane.

India’s manufacturing output has accelerated in July. The HSBC Markit Purchasing Managers’ Index was at 57.6 for the month. That’s a slight increase over June’s 57.3. Any figure above fifty on the index indicates a gain. And India’s been registering over-50 growth for 16 straight months. July’s expansion was boosted by new orders even as Indian manufacturers reported job cuts for the first time in four months.

Markets rocketed upwards on Monday pushed along by those strong auto sales numbers and strong corporate earnings. The Sensex recorded its best day of trading in six weeks, shooting up 213 points to 18,081. And the Nifty took off as well, gaining 64 to finish at 5,432.