GDP prediction fails to influence markets


Mumbai : Indian equities markets were up from opening levels Monday but trade remained fairly quiet as the central government announced estimates of economic growth at 7.1 percent, higher than what was predicted by other agencies like the International Monetary Fund.

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A key index was hovering 0.93 percent higher than its previous close, 30 minutes before noon.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) was at 9,387.18 points, 0.93 percent or 86.32 points higher than Friday’s close. It had opened at 9,359 points, higher than its previous close at 9,300.86 points.

At the same time, the broader-based S&P CNX Nifty index of the National Stock Exchange (NSE) was at 2,861.2 points, 0.64 percent up from its previous close of 2,843.1.

Broader market indices were up with the BSE midcap index trading 1.11 percent higher and the BSE smallcap gaining 1.1 percent.

Of the 13 sectoral indices on the BSE, metal, consumer durables and banking indices were up.

Leading the gainers’ list on the Sensex at this time were Jaiprakash Associates (up 4.79 percent to Rs.72.25), Tata Steel (up 4.03 percent to Rs.193.65), Sterlite Industries (up 3.49 percent to Rs.274) and Housing Development Finance Co (up 3.15 percent to Rs.1,457.20).

Among losing scrips were Wipro (down 2.1 percent to Rs.219.25), Grasim Industries (down 1.88 percent to Rs.1,386.75), ITC Ltd. (down 1.34 percent at Rs.180), and Sun Pharma (down 0.8 percent to Rs.1,050.35).

In other Asian markets, a key Japanese index, the Nikkei of the Tokyo Stock Exchange, was ruling at 8,020.54 points, 0.69 percent lower than its previous close.

The Hang Seng, a key index of the Hong Kong Stock Exchange, was 0.68 percent above its last close.

Wall Street stocks rose sharply Friday amid hopes that an economic stimulus package topping $800 billion would soon be passed by the senate, overshadowing the worst monthly jobs report in 35 years.

The blue-chip Dow Jones Industrial Average surged 217.52 points, or 2.7 percent, to 8,280.59. The broader Standard and Poor’s 500 Index climbed 22.75 points, or 2.69 percent, to 868.6.

The technology-heavy Nasdaq Composite Index rose 45.47 points, or 2.94 percent, to 1,591.71.