Sensex and Nifty recoiled on Friday after falling heavily as India's GDP growth bounced back from a 3-year low. The heavyweight automobile stocks of Tata Motors, Maruti Suzuki were among the top five gainers on Sensex ahead of November vehicle sales.
Sensex and Nifty recoiled on Friday after falling heavily as India’s GDP growth bounced back from a 3-year low. BSE Sensex gained 98 points to open at 33,247.66 while NSE Nifty added 37.15 points to begin at 10,263.7. The heavyweight automobile stocks of Tata Motors, Maruti Suzuki were among the top five gainers on Sensex as auto companies are scheduled to announce the vehicle sales for the month of November. On the other hand, the stock of Bharti Airtel lost the most among the Sensex stocks, down 1.2%. Among the sectoral indices of NSE, except Nifty Metal, all were trading in green led by Nifty Media and Nifty Auto.
Shares of Tata Motors, ONGC, ITC, TCS, L&T, Maruti Suzuki, Hero MotoCorp, Kotak Mahindra Bank gained up to 1.2% while Bharti Airtel, Coal India and HDFC were the major losers. In a major boost for Narendra Modi’s Gujarat state election campaign, India’s GDP growth sharply rebound to 6.3% in fiscal second quarter July-September from a three-year low in the first quarter, as businesses sprung into economic activity ahead of a condensed festive season and accelerated production to build inventory after the implementation of GST. The benchmark Sensex made a day’s high of 33,300.81 today.
India’s GDP growth in the second quarter (Jul-Sep) accelerated to 6.3% from 5.7% in Apr-Jun and 6.1% in Jan-Mar, Central Statistics Office data showed. However, the pace of growth in Jul-Sep was still way below 7.3% recorded in the corresponding quarter a year ago. A sharp bounce in manufacturing growth rate at 7% in July-September from 1.2% in the preceding quarter was among the primary drivers behind the second quarter GDP growth acceleration. On the other hand, farm growth slowed in the second quarter to 1.7% from 2.3% in the preceding three-month period. Agricultural production in the second quarter was held up due to poor crop output, India’s Chief Statistician TCA Anant said.
Earlier yesterday, India’s benchmark index Sensex plunged as many as 453 points. The key equity indices took a heavy blow on Thursday led by a number of factors that triggered one after the other. First of all, the fear among the investors due to uncertainty over the Q2 GDP growth numbers which are scheduled for later yesterday in evening. Indian stock markets traded 300 points down till afternoon session and recovered a bit also, as at 2:27 pm, BSE Sensex pared off partial losses, making an intraday recovery level of 33,438 on Thursday. But soon after India’s government budget value was announced Sensex went on to fall, extending losses. The benchmark Sensex lost 453.41 points or 1.35% to end at 33,149.35 while it tripped 494.04 points to hit the day’s low of 33108.72.
US markets marked another record peak on Thursday with the S&P closing at a record high and the Dow Jones Industrial Average breaking above the 24,000 mark for the first time as investors gained confidence that the Republican party’s push for a US tax overhaul would succeed. The Dow Jones Industrial Average rose 331.67 points or 1.39% to 24,272.35, the S&P 500 gained 21.51 points or 0.82% to 2,647.58, and the Nasdaq Composite added 49.63 points or 0.73% to 6,873.97.