Sensex closes in green ahead of Q1 GDP numbers

Mumbai  :  A benchmark index of Indian equities markets Friday closed 219 points or more than one percent higher in volatile trading ahead of the release of the first quarter gross domestic product (GDP) numbers later in the day.

The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 18,424.72 points, closed Friday’s trade at 18,619.72 points, up 218.68 points or 1.19 percent from the previous day’s close at 18,401.04 points.

In the day’s trade, Sensex touched a high of 18,679.26 points and a low of 18,272.76 points.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) closed at 62.75 points or 1.16 percent up at 5,471.80 points.

“It (Sensex) remained highly volatile mirroring the trend in the rupee. As we close the week, the market is awaiting the GDP data for the June-ending quarter,” said Dipen Shah, head, private client group research, Kotak Securities.

“Key indicators to watch out for in the next week would be crude prices and developments on Syria.”

Extreme volatility in the market was observed after Prime Minister Manmohan Singh informed Parliament that he expected first quarter GDP numbers to be flat, with growth eventually picking up later due to good monsoon.

The prime minister further said that the Indian economy was expected to grow at around 5.5 percent in the current financial year.

The Indian equities markets have seen sharp volatility, amidst heavy selling by foreign institutional investors (FIIs), showing their lack of interest in a weak Indian economy.

Other factors like the free falling rupee, concerns over the widening fiscal deficit due to National Food Security Bill, and the situation in Syria and, thereafter, the fallout on the oil prices have been reining heavily the markets.

In August, the Sensex lost 3.77 percent or 728.62 points. However the market was able to end the current week in positive territory with gains of 0.54 percent or 100.28 points.

Healthy buying was seen in bank, healthcare, information technology (IT), consumer durables and fast moving consumer goods (FMCG) sector.

However, metal, capital goods, realty and power stocks declined under heavy selling pressure.

The S&P BSE bankex surged by 161.37 points, healthcare index closed 140.58 points up, IT index ended the day’s trade higher by 122.13 points, consumer durables index was trading 104.81 points up and FMCG index rose by 95.96 points.

However, the metal index plummeted by 169.96 points, followed capital goods index slipped by 11.06 points, realty index was 0.78 points lower and the power index closed 0.42 points down.

The major Sensex gainers were: Bajaj Auto, up 5.62 percent at Rs.1,839.50; Cipla, up 4.96 percent at Rs.416.95; Tata Consultancy Services (TCS) up 3.96 percent at 2,023.15; HDFC Bank, up 3.86 percent at Rs.593.80; and Hindustan Unilever, up 3.70 percent at Rs.628.55.

The main losers were: Jindal Steel, down 8.85 percent at Rs.221.90; Sesa Goa, down 2.70 percent at Rs.187.30; Tata Motors, down 2.35 percent at Rs.298.70; Hindalco Inds, down 1.87 percent at Rs.104.90; and Mahindra and Mahindra, down 1.61 percent at Rs.781.

Among the Asian markets, Japan’s Nikkei closed 0.53 percent down while Hong Kong’s Hang Seng went up by 0.12 percent. China’s Shanghai Composite Index was marginally higher by 0.06 percent.

In Europe, London’s FTSE 100 was trading 0.48 percent down, while Germany’s DAX Index was lower 0.51 percent. The French CAC 40 Index was lower by 0.59 percent.

Photo  : AFP