Markets hold early gains after better than expected GDP numbers

The Indian equity markets are holding on early gains in-line with GDP data for the period FY12-Q1 in late morning trades. However, with several front line stocks witnessing resistance at higher levels due to profit taking, the market has given up a fine share of its gains at present. Meanwhile, GDP growth during the period FY12-Q1 stands at 7.7% versus 9.3% (YoY). The agriculture growth during the period stands at 3.9% versus 2.4% (YoY), manufacturing growth stands at 7.2% versus 12.7% (YoY), construction growth is at 1.2% versus 7.7% (YoY), industry grew by 5.1% and service sector grew by 10% during the period. India's economic growth in the first quarter of the ongoing fiscal year was in-line with consensus estimates, as a better agriculture output was offset by weaker expansion in the manufacturing sector. On sectoral front Realty, metal, information technology and bank stocks posted handsome gains. Stocks from consumer durables, oil & gas and automobile sectors too have drifted down a bit after a rousing start. Capital goods, PSU and FMCG stocks were pulling the market down. On the global front, Asian markets continued to trade in positive. Back home, the market breadth favoring the positive trend; there were 1,639 shares on the gaining side against 793 shares on the losing side while 108 shares remained unchanged.

The BSE Sensex is currently trading at 16,562.44, up by 146.11 points or 0.89%. The index has touched a high and low of 16,678.72 and 16,518.42 respectively. There were 22 stocks advancing against just 8 declining ones.

The broader indices kept trading in-line with benchmarks; the BSE Mid cap and Small cap indices rose 0.94% and 0.78% respectively.

The top gaining sectoral indices on the BSE were, Realty up by 2.15%, Metal up by 2.11%, Bankex and Metal up by 1.32% and IT up by 1.08%. While, CG down by 0.66%, PSU up by 0.15% and FMCG up by 0.10% remained the top losers on the index.

The top gainers on the Sensex were Tata Steel up by 4.81%, DLF up by 3.58%, RIL up by 2.89%, Jaiprakash Associate up by 2.64% and Hindalco Industries up by 2.53%.

On the flip side, ONGC down by 3.73%, L&T down by 1.90%, ITC down by 0.45%, Bajaj Auto down by 0.39% and Tata Power down by 0.38% were the top losers on the Sensex.

Meanwhile, the estimates of GDP growth numbers for the April - June quarter has come in slightly better than expected at 7.7% amid broader expectations of 7.6%.GDP at factor cost at constant (2004-05) prices in Q1 of 2011-12 is estimated at Rs 12,26,339 crore, as against  Rs 11,38,286 crore in Q1 of 20010-11, showing a growth rate of 7.7% against 8.8% recorded in first quarter of 2010-11 and 7.8% quarter on quarter.

The economic activities which registered significant growth in Q1 of 2011-12 over Q1 of 2010-11 are  'electricity, gas & water supply' at 7.9%,  'trade, hotels, transport and communication' at 12.8%, 'financing, insurance, real estate and business services' at 9.1%.

Other sectors which expanded at a good pace are 'manufacturing', rising 7.2%, 'community, social and personal services' gaining 5.6%, 'agriculture, forestry & fishing' increasing 3.9%, 'mining & quarrying' growing 1.8% and 'construction' rising 1.2% in the April-June period.

The S&P CNX Nifty is currently trading at 4,963.90, higher by 44.30 points or 0.90%. The index has touched a high and low of 4,998.05 and 4,948.40 respectively. There were 35 stocks advancing against 15 declines on the index.

The top gainers of the Nifty were Reliance Communication up by 5.40%, Tata Steel up by 4.74%, Sesa Goa up by 3.90%, DLF up by 3.66% and JP Associate up by 3.52%.

On the flip side, ONGC down by 3.98%, L&T down by 1.94%, SAIL down by 1.22%, BPCL down by 1.11% and GAIL down by 0.88%, were the major losers on the index.

All the Asian equity indices were trading in the green; Shanghai Composite was up by 0.67%, Hang Seng was up by 1.95%, Nikkei 225 was up by 1.19%, Seoul Composite was up by 0.80% and Taiwan Weighted was up by 0.90%.

Meanwhile, Malaysian and Singaporean bourses are closed on account of Hari Raya Puasa today while the stock markets in Indonesia too remained shut for Idul Fitri holiday. Indonesian stock exchanges will remain closed till September 2. 

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