Markets pare some gains post GDP data; Q4 GDP stands at 7.8%

Key benchmark equity indices though have pared some of their gains, are still trading in the positive territory at this point of time. Rest of the Asian markets with an exception of Jakarta Composite, which was down by 0.07% were trading in the green. The US index futures too were showing an uptick in screen trade. Back home, all the sectoral indices on the BSE except Auto, which was down by 0.09% were trading in the green. FMCG, realty, healthcare, baking and capital goods were the top gainers. Broader markets were also showing some strength with the mid cap and small-cap indices gaining 0.79% and 0.43%, respectively. The market breadth on the BSE was in favour of advances in a ratio of 1483:889 while 121 scrips remained unchanged. Meanwhile, India posted a fall in GDP growth to 7.8% in the fourth quarter (January to March) as against 8.2%, on quarter-on-quarter (QoQ) basis. For the full year, GDP has come in at 8.5% versus 8%.

The BSE Sensex jumped 106.17 points or 0.58% at 18,338.23. The index has touched a high of 18,417.50 and a low of 18,266.61, respectively.

The BSE Mid cap and Small-cap indices gained 0.79% and 0.43%, respectively.

All the sectoral indices on the BSE except Auto, which was down by 0.09% were trading in the green. FMCG up 1.48%, Realty up 1.43%, Healthcare (HC) up 1.05%, Bankex up 0.99% and Capital Goods (CG) up 0.59% were the top gainers in the BSE sectoral space.

The top gainers on the Sensex were DLF up 2.42%, ITC up 2.29%, HDFC Bank up 1.76%, Jindal Steel up 1.32% and HDFC up 1.23%.

On the flip side, RCom down 1.54%, M&M down 1.29%, Hindalco Inds down 0.98%, Cipla down 0.79% and Bharti Airtel down 0.60% were the major losers on the index.

Meanwhile, exports of Indian apparels climbed higher to touch the $1 billion mark in the month of April 2011, surging by around 13% year-on-year as it got fortified by huge demand from major importing markets like the US and Europe. According to the data provided by the Apparel Export Promotion Council (AEPC), the apparel exports came in at $972 million in April last year.

Apparel Export Promotion Council (AEPC) Chairman Premal Udani opined that 'there is a good demand for our exports from the US. Also, the European market is picking up.' Udani was also positive on the export prospects for the current fiscal year as he expected exports to touch $14 billion in the current fiscal on the back of good orders not only from the western markets, but also from new markets like Latin America.

The US and Europe together account for a large chunk of around 65% of India's total garment exports. The council expects garments exports' growth to continue in 2011-12. During 2010-11, garments exports grew by 4.4% to $11.1 billion compared to the previous fiscal. The garment industry employs about 70 lakh people in the country, out of which almost half are engaged in the export sector.

Though the global economy has faced many difficulties during the past two years, the export of Indian textile and garment products has managed to weather the storm swiftly. International economists expect the textile and garment production to move from Eastern European countries to Asian countries in 3-4 years. China is presently meeting 70% of the clothing demand of the world but is now reducing production. Economists think this is a good time for countries like India, Bangladesh, Pakistan, Vietnam and Cambodia to expand production and exports and be well prepared and equipped to meet the increasing demand.

The S&P CNX Nifty climbed 39.70 points or 0.73% at 5512.80.  The index has touched a high and a low of 5532.95 and 5489.70, respectively.

The top gainers on the Nifty were ACC up 2.50%, ITC up 2.45%, DLF up 2.44%, HDFC Bank up 1.90% and Dr Reddy's up 1.73%.

On the flip side, Rel Capital down 2.04%, RCom down 1.54%, IDFC down 0.82%, M&M down 0.81% and Hindalco Inds down 0.80% were the major losers on the index.

Rest of the Asian markets with an exception of Jakarta Composite, which was down by 0.07% were trading in the green. Shanghai Composite gained 0.20%, Hang Seng soared 1.17%, KLSE Composite rose 0.46%, Nikkei 225 surged 1.76%, Straits Times climbed 0.35%, Seoul Composite soared 2.32 and Taiwan Weighted added 1.87% 

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