Sensex ends below 29,000, Nifty at 8,940 post Q3 GDP data

Snapping two-session long losing spree, the benchmark indices settled higher as a much better-than-expected December quarter GDP data lifted sentiment, while positive manufacturing data released today also contributed to gains.

The S&P BSE Sensex ended the day at 28,946, up 203 points, while the broader Nifty was ruling at 8,940, up 61 points. 

In the broader market, the BSE Smallcap and BSE Midcap index gained 0.1% and 0.4%, respectively. 

The market breadth, indicating the overall health of the market, was strong. On BSE, 1,629 shares rose and 1,216 shares fell. A total of 197 shares were unchanged.

"Surprising markets positively, Q3 GDP numbers showed little signs of demonetisation’s impact. Continued expansion in manufacturing PMI also served to add more legs to market’s run, while Trump’s softened immigration stance shored up IT stocks. Markets would now look towards Friday’s US non farm payrolls which should shape rate hike expectations but election results due next week could lend a bit of caution,” said Anand James, Chief Market Strategist, Geojit Financial Services.

Sectors and stocks

BSE Realty index (3.5%) was the leading sectoral gainer, led by gains in Sobha (up 16%),  Unitech (up 7%) and Oberoi Realty (up 5%). The Realty index has rallied 10% since the Budget day against the 4% rise in benchmark indices during the same period.

Among individual stocks, Tata Tele gained 20% to hit its upper circuit of Rs 9.62 after Tata Sons and NTT Docomo proposed a resolution to the Delhi High Court on settling a dispute over the $1.17 billion due to the Japanese telco for exiting their joint venture, ending two years of public acrimony. 

Shares of Majesco surged 13% to Rs 389 after the IT consulting & software firm said that its insurance arm and a subsidiary launched two new solutions.

Tata Sponge Iron gained nearly 9% to Rs 710 after the foreign institutional investor (FII) bought nearly 1% stake in Tata Group company through open market. 

Among decliners, shares of manganese ore miner Moil fell 3% to hit its two-month low of Rs 342 after the company cut prices for different grades of manganese ore for the fourth quarter, its second consecutive cut after a series of price hikes. 

Manufacturing PMI expands in February

Manufacturing production continued to slowly rise in February, with a rebound in export demand pushing up new orders, the widely tracked Nikkei India Manufacturing Purchasing Managers’ Index (PMI) showed.

After rising to 50.4 in January, PMI inched up to 50.7 in February. This was the second month that PMI managed to stay above the 50 point mark that separates expansion from contraction, indicating that the health of the sector improved to a greater extent than in January, beating the December downturn due to demonetization, the survey said.

Q3 GDP growth beats note ban blues

Gross domestic product (GDP) for the third quarter (Q3) of financial year 2016-17 (FY17) grew at 7 per cent, allaying fears of any major effect of demonetisation though it was the lowest expansion in four quarters. 

Private final consumption expenditure, denoting demand, rose at double the rate (10 per cent) in Q3, against five per cent in Q2.

Global markets

European markets opened higher. The pan-European Stoxx 600 was 0.7% higher with all sectors trading in positive territory. Franc's CAC 40 and Germany's DAX added over 1% each. Asian markets also ended higher even as US president Donald Trump did not offer further details on his plans for infrastructure spending and tax reforms. MSCI's broadest index of Asia-Pacific shares outside Japan was down about 0.2%, while Japan's Nikkei gained 1.4%. China's Shanghai Composite and Hong Kong's Hang Seng index was up 0.16% and 0.15%, respectively.