Markets take positives from weak GDP data, strong global cues
Gross domestic product (GDP) slid to 5.3% for the quarter ended September compared with 5.5% in the previous quarter and 6.7% in corresponding quarter last fiscal. But the market chose to see the positive side of of these numbers, hoping that the weak GDP data would force RBI's hand to bring down interest rates during its next policy review. “Despite their stance on inflation, the RBI is likely to come under immense pressure on easing rates in the coming quarters. We maintain expectations of another 50 bps easing on the repo by March 2013, and possibly more going forward,” said Gautam Trivedi, MD & head of equities, Religare Capital Markets.
The 30-share BSE Sensex ended Friday with gains of 169 points or 0.88% to 19,339, while the broader 50-share Nifty added 54.8 points or 0.94% to close at 5,879. On Friday, FIIs bought shares worth R1,611 crore, while domestic institutional investors sold shares worth R798 crore, BSE data show.
FIIs have purchased stocks worth $2billion in November, taking the year-to-date purchases to $20.07 billion. The benchmark BSE Sensex is up about 25% in the year
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