Markets correct on lower GDP growth rate

The markets are witnessing correction in the noon on the back of weaker than expected GDP growth data and have come off the high levels. The Sensex is up 128 points at 17,859 and the Nifty is up 36 points at 5,412 levels. Earlier in the day. the markets opened on a firm note and the Sensex touched the high of 18,001 levels.

India's economic growth rate slipped to 6.1% in the third quarter this fiscal, lowest in more than 2 years due to poor performance of the manufacturing, mining and farm sectors.

The Gross domestic product (GDP) growth the in third quarter (October-December) last fiscal was 8.3%, as per the latest data released by the government today.

On the global front, the Asian markets were trading in the green. Nikkei ended marginally higher at 9,723 levels, Hang Seng was up 32 points at 21,600  and Taiwan added 162 points to 8,121 levels.

Back home, ONGC is the top gainer among the Sensex stocks, up 4% at Rs 295 after the state-run oil exploration and production firm said that it will launch its share sale through an auction on Thursday.

Index heavyweight Reliance Industries is also trading higher by nearly 3% at Rs 818. Bajaj Auto, Tata Steel, Wipro, BHEL, Tata Power, Sun Pharma, Sterlite Industries, SBI, Bharti Airtel, Hero MotoCorp, Coal India and Infosys are also among the gainers, up 1-2.7% each.

On the other hand, Jindal Steel, L&T, HDFC Bank, Maruti Suzuki, Gail India and ICICI Bank are among the notable losers.

Buying is visible across the board with Oil & Gas, PSU, Realty, Power and Metal stocks leading the gains. The BSE Oil & Gas index has jumped 2.5% or 214 points to 8,710 levels. From the oil & gas space, BPCL, Gujarat State Petronet, Oil India, HPCL, Petronet LNG and Indian Oil are among the top gainers.

PSU index is also up, 2% or 158 points at 7,807. Hindustan Copper is the top gainer from the PSU pack, up 9% to Rs 294. It is followed by Neyveli Lignite, MMTC, STC, Bharat Electricals, HMT and Engineers India.

Realty. Power, Metal, IT, Consumer Durables, Healthcare, Auto, FMCG, Capital Goods and Bankex are also up 0.1-1.6% each.

Shares of rice exporters such as Kohinoor Foods, KRBL and LT Foods have rallied more than 10% each on hopes of higher export of basmati rice after the government had reduced the minimum export price (MEP).

The broader markets are also trading higher. The BSE mid-cap index has advanced 1.2% or 75 points to 6,392 levels and the the small-cap index is up 1% at 6,880 levels.

The overall breadth is positive as 1,620 stocks are advancing while 1,008 are declining.