Indian economy growth reflected in impressive GDP data is a welcome relief for the stock market and will help in the recovery on the Dalal Street which is facing hard times on the back of string of negative global and domestic cues, say analysts.
The Indian economy grew by 8.9 per cent in the second quarter of the current fiscal, up from 8.7 per cent in the corresponding period a year ago.
This according to marketmen should boost the stock market which is reeling under pressure due to the ongoing 2G spectrum row and loan bribery scam.
The consensus estimate was for a GDP growth of 8.2-8.3 per cent in the second quarter of the fiscal with the broad range of 8-8.5 per cent.
"The economy grew at a faster pace than anticipated in the second quarter of the current fiscal year, prompting a recovery in the stock market and lifting hopes of meeting the Government's annual target of 8.75 per cent," IIFL Head of Research Amar Ambani said.
The Bombay Stock Exchange benchmark Sensex which had lost over 187 points intra-day, rebounded with a gain of about 104 points to trade at 19,508.76, soon after the GDP numbers were announced.
Analysts feel that the smart data reflect the strong India growth story and that the market will see a comeback.
"Market would definitely see a handsome recovery as the investor confidence would bounce back specially after the better-than expected GDP numbers highlighting the smart pace of growth in the country's economy," CNI Research CMD Kishore P Ostwal said.
Crisis in the global peers and scams back home has seen the Sensex turning highly volatile and plummeting 7.6 per cent since November 5.
