 "Photo: shutterstock")
The benchmark indices pared initial gains to trade marginally lower on Thursday after country’s economy grew lower than expected in the September quarter at 7.3%, as compared to 7.6% registered during the same period last fiscal year.
At 15:00 pm, the S&P BSE Sensex was trading at 26,584, down 69 points, while the broader Nifty50 was quoting 8,195, down 30 points.
"We expect the bounce back on the Nifty to extend towards 8,250-8,300 levels; whereas on the lower side, 8,180-8,150 would now act as a strong support zone for the market," said Angel Broking in a technical note.
"We expect the bounce back on the Nifty to extend towards 8,250-8,300 levels; whereas on the lower side, 8,180-8,150 would now act as a strong support zone for the market," said Angel Broking in a technical note.
On Wednesday, foreign institutional investors were net sellers with net equity sell value of Rs 434 crore, while domestic institutional investors bought equities worth Rs 677 crore, provisional data available with BSE suggested.
Sectors and stocks
Energy shares such as ONGC, GAIL and RIL were the top gainers on the Sensex and added up to 3%. BSE Energy index was the top sectoral gainer and gained 1%.
Balkrishna Industries surged over 12% after the company more than doubled its net profit at Rs 243 crore in the September quarter. It had reported a profit of Rs 106 crore in the same period last year.
Wipro inched up nearly 1% after the company announced that it has signed an agreement for divestment of its EcoEnergy division viz. Wipro EcoEnergy, on slump sale basis, for a sale consideration of $70 million.
Second quarter GDP
Economic growth rose slightly to 7.3% in the second quarter of the current financial year from 7.1% in the first quarter and that too when it was pushed up by the government expenditure.
The growth was lower than expected 7.5% for the second quarter and 7.6% registered in July-September of 2015-16, which may propel RBI to cut the policy rate in its December review as inflation is also benign.
The data indicate that the economy may witness the heavy impact of demonetisation in the third quarter and even some part of the fourth quarter.
Among various segments, it was mainly agriculture which showed some improvement. The farm sector rose 3.3% in the second quarter against 1.1% in the first quarter.
Oil prices shoot up
Oil prices shot up over 10% after producer club OPEC and Russia cut a deal to reduce output to drain a global supply glut, but analysts warned prices could recede as other producers stand ready to fill the gap.
The Organization of the Petroleum Exporting Countries (OPEC) agreed on Wednesday its first oil output reduction since 2008 after de-facto leader Saudi Arabia accepted "a big hit" and dropped a demand that arch-rival Iran also slashed output. The deal also included the group's first coordinated action with non-OPEC member Russia in 15 years.
US crude oil soared more than 9% overnight to a one-month high just shy of $50.00 a barrel. The contracts were a fraction lower at $49.42 a barrel early on Thursday. Brent crude was just below $52.00 a barrel after rallying to a six-week peak of $52.37.
Global markets
Asian markets swept higher following a surge in crude oil prices after the Organisation of the Petroleum Exporting Countries (OPEC) reached a deal to cut output. China’s Shanghai Composite gained 0.52%, Japan’s Nikkei added 2%, Hong Kong’s Hang Seng was up 0.66%, while South Korea’s Kospi (up 0.08%) and Taiwan’s TWSE (up 0.27%), were also trading higher.
(With inputs from Reuters)
