Equity indices gain on GDP forecast

Written by Markets Bureau | Mumbai | Updated: Feb 10 2009, 06:36am hrs
Indian equity indices started the week with smart gains on the back of strong cues from Asian markets and sustained buying throughout the trading session. The rally was backed by the government forecast that the economy will expand by over 7% during the year ending March 2009, boosting the prospect for new government stimulus measures.

The 30-share Sensex of the Bombay Stock Exchange (BSE) added 283.03 points, or 3.04%, to close the day at 9,583.89 points. The broader S&P CNX Nifty of the National Stock Exchange (NSE) ended the day higher by 76.80 points, or 2.70%, at 2,919.90 points.

Dealers in the market said that apart from buying of heavyweight stocks, there was some buying witnessed in banking and realty stocks on the hope that the government would announce some measures to boost growth in its interim budget on February 16.

However, some Asian and European markets slipped into the negative on growing worries about a US bank rescue plan, said dealers.

An analyst from a leading broking house said, We hope that the central bank will cut rates once again before March, after the announcement of GDP. Everything now depends on the interim budget next week and the announcement of the US stimulus package.

Earlier during the day, Indian bourses opened on a strong note, backed by positive global cues. However, during intra-day trade, investors were cautious, ahead of the GDP data.

All sectors in the BSE sectoral indices ended the day on positive terrain, with metal and consumer durables being the top performers of the day. The market breadth remained positive throughout the trading session, as out of 2,555 stocks traded on the BSE, 1,562 stocks closed in green while 910 stocks closed in red and 83 stocks remained unchanged. Among the Sensex companies, 29 stocks advanced and one stock closed the day with losses.