ALSO READDemonetisation blues make markets see red, Sensex nears 6-month low Q4 GDP, PMI data impress markets; Nifty holds 8,200 Sensex trades flat, Nifty below 8,100; Rupee hits 68 mark Nifty facing resistance above 8,100; demonetisation weighs Markets end at fresh 52-week high; Q1 GDP data in focus
Domestic indices have gained ground after making a flat opening in today’s trade ahead of GDP data following mixed Asian cues after US GDP grew at 3.2% in September quarter. Hopes of strong GDP for September quarter helped investor sentiment, but the side-effects of demonetisation continue to have a bearing on the market.
BSE Sensex rallied as much as 90 points during early trades but later pared gains while Nifty 50 continued to test it's crucial 8,150 levels.
At 10:12 am, the S&P BSE Sensex was trading at 26,514, up 120 points, while Nifty50 was quoting 8,180, up 38 points. In Broader markets, BSE Midcap was up 0.42% while BSE Small Cap was trading 0.49% higher.
“Recently Nifty has seen recovery of 250 points from 7,950 to 8,200 zones and now if it fails to deliver strength by holding 8,150 zones then it may drift towards 8,080-8,050 zones while holding above 8,200 might attract fresh move towards 8,300 zones in next coming sessions,” said Anand Rathi Equity Advisory in a technical note.
Sector and Stocks
Lupin was one of the top gainers on Sensex, up 0.96% after the company received approval from the US health regulator to market its Armodafinil tablets.
Other gainers included Asian Paints (1.20%), TCS (0.81%), ONGC (0.68%) and Maruti (0.67%).HDFC was the top loser on BSE Sensex, down 0.84%.
Pharma sector was gained the most in both the headline indices while metal was the top sectoral laggard with Hind Zinc (2.52%), NALCO (1.39%) and Vedanta (1.34%) dragging the index.
Idea Cellular fell 1.33% after reports that Axiata is looking to sell its 20% stake in company as it believes the Idea’s valuation will remain subdued in the coming future.
SAIL rose close to 1% after government announced that it will hold auction to identify strategic buyers for SAIL subsidiaries.
GDP data today
Reuters poll shows Indian economy will expand by 7.5% in July-September, accelerating from a 15-month low of 7.1% in the previous quarter but lower than 7.9% growth posted for the March quarter. Other forecasts are ranged from 6.5% to 8.7%.
The quarterly GDP data won't show the ill-effects of demonetisation. The impact from Modi's bold and risky move will be felt only in the December quarter.
Asian stocks edged higher on Wednesday reflecting upbeat US growth news while oil steadied after a sharp drop overnight as OPEC struggled to agree on a glut-draining production cut.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1% in early trades. It is poised to post a second consecutive monthly loss.
Early action in Asian stocks was just as guarded with Australia down 0.16%, the Nikkei flat and South Korea up 0.2%.
Other Asian indices, including Hong Kong's Hang Seng (down 0.4%), South Korea's Kospi (up 0.4%) and Taiwan's TWSE (up 0.3%), were trading higher. China's CSI300 index fell 0.6% to 3,542 on Wednesday morning.
In currency markets, the dollar consolidated recent gains against a trade-weighted basket of its peers with investors looking to buy on dips after strong data.
The US economy grew faster than initially thought in the third quarter, notching its best performance in two years.
The relatively upbeat data pushed major US stock indices higher with major benchmarks closing between 0.2%-0.6% up.