Business Today

High GDP growth helps erase early losses

The 30-share BSE benchmark, which had lost nearly one per cent at the outset, bounced back to close with a gain of 116.15 points at 19,521.25.

twitter-logoPTI | November 30, 2010 | Updated 17:34 IST

Better than expected economic growth (GDP) numbers for the second quarter this financial year helped stock markets erase early losses on Tuesday, with the Bombay Stock Exchange benchmark Sensex ending the day with a gain of over 116 points.

Spurred by 8.9 per cent GDP growth recorded during July-September quarter, and a firm European trend, funds bought stocks pushing up the BSE benchmark index.

The Sensex, which had lost nearly one per cent at the outset, bounced back to close with a gain of 116.15 points at 19,521.25, on revival of investor confidence. It had touched a day's low of 19,218.02.

The broad-based National Stock Exchange index Nifty rose 32.70 points to 5,862.70, after dipping to a day's low of 5,768.35 points.

Investor confidence regained on reports that the economy grew 8.9 per cent during the second quarter, from 8.7 per cent in the same period last year, driven by better performance of agriculture and manufacturing sectors.

Trading sentiment further turned bullish, as European stocks opened higher this afternoon.

Besides, market seemed to respond positively to the assurance by Finance Minister Pranab Mukherjee that investor money is safe as far as fallout of the housing finance racket was concerned. Last week, the Central Bureau of Investigation arrested 8 officials of several public sector banks and institutions.

The realty stocks, which had touched lows recently after the outbreak of the bribery-for-loans scam, mainly led the upward march. The realty sector index was the best performer - rising 5.67 per cent to 2,925.40.

DB Realty, a construction company named in the probe, hit a daily upper limit by adding 5 per cent to Rs 207.90. DLF Ltd, not named the the scam, added 7 per cent to Rs 307.25.

The stock had plunged 20 per cent as of Monday, since the Sensex hit a record high on November 5.

However, Money Matters Finance, a company at the centre of the controversy remained under pressure and hit an intra-day low, losing 10 per cent to Rs 309.90. It has tumbled 60 per cent since the news of the bank scam broke last week.

The consumer durable index was second-best performer, rising 2.08 per cent to 6,434.44, followed by power sector index - 1.84 per cent to 2,891.48.

Other supporter to the market were stocks in power, PSU, FMCG, auto, tech and banking sectors. However, oil & gas sector declined 0.56 per cent to 10,062.08, as stocks of Reliance Industries, GAIL India and BPCL closed lower.

As the buying activity spilled over a wide-front, smallcap index gained 1.90 per cent to 9,744.71 and midcap index 1.39 per cent to 7,764.02.

  • Print
A    A   A