Sensex ends up 288 pts

The Sensex has ended (provisional) at 16,705 - up 288 points. Nifty ended above the 5,000 mark at 5,013 - up 93 points.
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(Updated at 1431 hrs)

Markets have regained strength and are trading with gains of over 1% in late noon trades. The Sensex traded in the positive zone in morning trades but slipped to a low of 16,443 after the GDP data came out. The index has once again moved up and touched a high of 16,676 - up 260 points. Nifty has regained its 5,000-mark.

The first quarter GDP growth dipped to 7.7% compared to 9.3% during the same quarter of the previous year. Manufacturing sector growth came in at 7.2% vs 12.7% on a y-o-y basis. Industrial growth stood at 5.1% and the farm sector grew at 3.9%, according to the government data.

"Growth was very close to consensus and there are few obvious "nasties" hiding in the industry breakdown. The acceleration in trade-exposed manufacturing is encouraging as is the steady, strong expansion in financial services. The slowdown in construction is less pleasing at face value, but overall this robust report should leave RBI on track for one more 25 basis point hike this year," said Sean Callow from Westpac Institutional Bank, Sydney.

Global markets, however, continued to remain positive. Europe's CAC and DAX have gained 0.4% each while FTSE has surged 2.6% to 5,265. In Asia, Nikkei closed up 1% and Hang Seng gained 1.7% in trades.

BSE realty index has surged 3.4% to 1,736. Metal index is up 3% at 12,019. The bankex has advanced 1.7% to 10,853.

Reliance, HDFC, HDFC Bank, Infosys and ICICI Bank have together contributed around 180 points to the Sensex's upmove. Reliance has gained 5% at 793.  ICICI Bank and Infosys are up around 2% each.

DLF, Tata Steel, Sun Pharma and Hindalco are some of the other key gainers.

Meanwhile, ONGC continues to languish and is now down 4% at Rs 264.

According to reports, ONGC's much-delayed Rs 12,000 crore follow-on public offer may open on September 20 or 27. The red herring prospectus (RHP) is likely to be filed with market regulator Sebi on September 5.

Larsen & Toubro, ITC and Bajaj Auto have also dropped into the negative zone.