GDP prediction brings cheer to equities markets


Mumbai : Indian equities markets made smart gains Monday 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. A key index closed 3.04 percent higher than its previous close.

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The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened higher at 9,359 points, gained 283.03 points or 3.04 percent to close at 9,583.89 points.

“Less frightful GDP (gross domestic products) numbers and an anticipated $800 billion of US stimulus package have helped the markets move up today. We will have to watch out for the fine print though,” said Jagannadham Thunuguntla, head of the capital markets arm and director of India’s fourth largest share brokerage firm, the Delhi-based SMC Group.

At shutters, the S&P CNX Nifty of the National Stock Exchange (NSE) moved up 2.7 percent to close at 2,919.9 points.

The BSE midcap index was up 1.7 percent, while the BSE smallcap index gained 1.63 percent over its previous close.

Of the 13 sectoral indices on the BSE, metal, consumer durables, and consumer goods indices gained marginally, while all other indices turned negative.

Top gainers among the scrips on the Sensex included Jaiprakash Associates (up 8.48 percent at Rs.74.80), Tata Steel (up 7.2 percent at Rs.199.55), Reliance Infra (up 6.82 percent at Rs.577.50) and Sterlite Industries (up 6.21 percent at Rs.281.20).

Among the major gainers on the BSE were Bhushan Steel (up 16.98 percent at Rs.332.80), Educomp Solutions (up 13.96 percent at Rs.1,597.05) and United Spirits (up 13.92 percent at Rs.701.45).

The only loser on the Sensex was Hindustan Unilever (down 0.27 percent at Rs.260.20).

The overall market sentiment was positive with 1,562 stocks advancing, 910 scrips declining and 83 remaining unchanged.

In other Asian markets, a key Japanese index, the Nikkei of the Tokyo Stock Exchange, closed at 7,969.03 points, 1.33 percent lower than its previous close.

The Hang Seng, a key index of the Hong Kong Stock Exchange, ended 0.84 percent above its last close.