The Sensex jumped nearly 400-points from the day's low on the back of better-than-expected GDP numbers. The index which touched a low of 19,218 in morning trades, rebounded into green and rallied to a high of 19,610. However, neversouness towards the end saw the BSE benchmark index pare some gains, and finally settle 116 points higher at 19,521.
The NSE Nifty closed at 5,863, up 33 points. In the broader markets, the smallcap index gained 2% while the midcap index added 1.4%. The broader markets outperformed the benchmark index, which was up 0.6%.
Earlier in the day, the markets had a choppy session. Owing to the weak Asian cues, the markets initially edged lower but as the Chinese markets recovered coupled with a better-than-expected GDP results, the markets moved upwards.
Despite a partial recover, the Asian markets ended in the red. Seoul Composite and Taiwan Weighted were the only exceptions gaining 0.4% and 0.1%, respectively. The Chinese market had a steep intra-day fall due to the reports of Beijing planning to tighten policy in order to rein in inflation. However, towards the end, the index pared most of its losses to close at 2,820, down 1.6%. Hang Seng shed 0.6% at 23,007 while the Nikkei lost nearly 2% to end the day at 9,937.
In the European markets, DAX and FTSE are the only indices trading in the green.Earlier, all the indices had opened in the positive. CAC is currently down 0.4% in the US markets, The index futures indicate that Dow may open down 19 points on fears that the the $112.61 billion bailout for Ireland won’t be able to contain the Euro debt crisis. Yesterday, the stocks had fallen on the fears of the same.
Back home, the GDP results brought some cheer to the markets. India's economy grew more than expected in the quarter through September, boosted by farm output and manufacturing, putting pressure on the Reserve Bank of India (RBI) to tighten monetary policy although a rate increase next month still looks unlikely. Annual gross domestic product growth expanded 8.9 per cent from 8.8 per cent in the fiscal first quarter, the Central Statistical Organisation said.
Among the sectoral indices, realty was up 5.6% lead the pack after trading at the bottom of the chart for five trading days. Obn the other hand, Oil & gas which was at the top of the chart, today is the only index in the red, down 0.5%. Consumer Durables up 2% followed by Power and PSU gaining 1.8% and 1.7% respectively. Orbit Corporation up nearly 14%, Indiabulls Real Estate, DLF, Anant Raj Industries, Sobha Developers and Peninsula Land adding 6% - 8% were the movers in the realty space.
Realty major, DLF up 7% was the top gainer on the Sensex followed by Bharti Airtel which gained 6%, Tata Motors and SBI up 4% each were the other noteable gainers.
Tata Steel, market heavy weight RIL down 1% each were the top losers on the benchmark index. ICICI Bank, Tata Power, L&T, ACC and HDFC which shed 0.7% -0.9% are the other losers.
The market breadth was negative. 1153 stocks had declied while 804 had advanced.
In a staggering performance, the initial public offer of state-run MOIL received a more than five times subscription till noon on the third day of issue today.
