Markets end flat amid growth concerns

Markets closed on a flat note amid growth concern after the government released the dismal set of GDP numbers.

The Sensex provisionally closed at 17,740 up 9 points and the Nifty closed at 5,383 up 8 points. Earlier in the day, the markets opened on a firm note and the Sensex touched the high of 18,001 in the morning trades.

The GDP growth of 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 was not in line with the street expectations and dampened the investor sentiment. Post this announcement selling pressure was visible in capital goods, FMCG, banking and IT stocks.

At the same time, Oil & Gas, PSU, metal and realty stocks witnessed buying in trades today. The BSE Oil & Gas index was the top sectoral gainer, up 2.4% to close at 8,700 levels.

Among the Sensex stocks, ONGC was the top gainer the stock closed at Rs 294, up nearly 4% after after the state-run oil exploration and production firm said that it will launch its share sale through an auction on Thursday. Reliance Industries, Sterlite Industries, Tata Power and Tata Steel also ended higher.

On the other hand, L&T, HDFC Bank, ITC, Jindal Steel and Hero MotoCorp were among the losers.
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(Updated at 1430 hours)

Markets have erased the gains in the late noon deals post the dismal set of GDP numbers. The Sensex is at 17,773 up 42 points and the Nifty has is up 9 points at 5,384 levels. Earlier in the day, 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.

The other Asian markets ended the day in green. Nikkei ended higher by a point at 9,723, Hang Seng added 0.5% to close at 21,680 and the Taiwan ended at 8,121 levels, up 2%.

The European markets have opened higher. The CAC and DAX have added over 0.6% each and the FTSE was trading marginally higher at 5,932 levels.

Back home, Larsen & Toubro, Jindal Steel, HDFC Bank, maruti Suzuki, Tata Motors, Gail India, Mahindra & Mahindra, TCS and HDFC are among the top Sensex losers, down 0.3-3.1% each.

On the other hand, Tata Power, ONGC, reliance Industries, BHEL, Sterlite Industries, Bharti Airtel, Wipro, Tata Steel and Bajaj Auto are among the gainers.

Capital goods, banking, auto and FMCG stocks are facing the heat of the selling pressure.

The BSE Capital Goods index is down 1% or 116 points at 10,479. Praj Industries, Siemens, BEML, Crompton Greaves, Lakshmi Machine Works and Suzlon Energy are also among the top losers from this space.

Bankex has shed 0.6% or 70 points at 11,975. Auto, FMCG and Healthcare indices have also in the red.

At the same time, Oil & Gas, PSU and Power stocks continue to trade on a strong note. The BSE Oil & Gas index has advanced 2% or 174 point s to 8,671 levels. PSU index has added 1.4% to 7,753 levels. Power, metal, Realty, IT and Consumer Durable indices are in positive zone.

Among the individual stocks, Rico Auto Industries has rallied 16% to Rs 12.51 after the company said its board of directors have approved the proposed divestment of the entire 50% stake of the company in Continental Rico Hydraulic Brakes India Private Limited, a joint venture of the company with Continental AG, Germany.

Bombay Burmah Trading Corporation, Bajaj Finserv, Amrutanjan Health Care and Ratnabali Capital Markets have rallied more than 9% each on back of over four-fold rise in trading volumes today.

The broader markets have also come off the intra-day high levels. The BSE mid-cap index is up 0.5% at 6,348 levels and the small-cap index is up 17 points at 6,835.

The overall breadth has turned neutral as 1,419 stocks are advancing while 1,371 are declining.