Markets reverse gains after hitting fresh highs ahead of GDP data

The benchmark indices hit their record highs in the afternoon trade ahead of the gross domestic product data for the March quarter due later in the day.

The GDP growth is expected to come in at 7.1% for the January-March quarter, which would allow the country to hang on to its status as the world's fastest growing major economy, according to economists polled by Reuters.

At 3:03 pm, the S&P BSE Sensex was trading at 31,170, up 11 points, while the broader Nifty50 was ruling at 9,624, up 0.4 points. 

In intraday trade, the 30-share Sensex rose 96 points to touch its fresh high of 31,255, while the 50-share Nifty added 25 points to hit its record high of 9,649.

Broader market outperformed the frontline indices with the S&P BSE Midcap and the S&P BSE Smallcap indices rising up to 1%. 

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,327 shares rose and 1,112 shares declined. A total of 140 shares were unchanged.

Automobiles companies were in focus with the S&P BSE Auto (24,293) and Nifty Auto index (10,919) hitting their respective record highs on the bourses in intra-day trade.

Mahindra & Mahindra (M&M), Ashok Leyland, Exide Industries, Cummins India, Bharat Forge and Maruti Suzuki India, from the auto index, were up in the range of 1% to 6%.

The S&P BSE Auto and Nifty Auto index were up 1% each, up for the seven straight trading sessions.

Mahindra and Mahindra gained as much as 6.4% after the company reported nearly 20% rise in March-quarter profit, beating analysts' estimates.

United Spirits rose to its highest since March 15 after posting gains in March-quarter margins and revenue.

Among losers, Reliance Communications plunged as much as 9.5% to its lowest ever after Moody's downgraded it deeper into "junk" territory and kept its ratings under review for further downgrade as the company struggles with a heavy debt burden. 

Asian markets, meanwhile, held steady, capping a fifth consecutive month of gains as data showed China's factory activity grew at a steady clip this month, reassuring investors worried about a slowdown in the world's second-biggest economy.

MSCI's broadest index of Asia-Pacific shares outside Japan was broadly flat on Wednesday as Chinese stocks ran out of steam after an early run higher.

Japan's Nikkei edged 0.3% lower.

(With inputs from Reuters)