Sensex rises on Q3 GDP data cheer

ELSEWHERE IN ASIA, BOURSES CLOSED HIGHER AMID STABILITY IN BOND MARKETS

MUMBAI: Benchmark BSE Sensex surged nearly 750 points and NSE Nifty rallied over 232 points on Monday as investors cheered the economy returning to positive territory after two quarters of contraction.

The 30-share BSE index briefly traded above the 50,000mark in day trade before closing at 49,849.84, showing a rise of 749.85 points or 1.53%. Of the Sensex constituents, 29 closed with gains. Likewise, the NSE barometer Nifty settled with a gain of 232.40 points or 1.60% at 14,761.55.

Top performers were PowerGrid, ONGC, UltraTech Cement, Asian Paint, Kotak Bank and Titan–rising as much as 5.94%.

“Positive global cues and US yields retreating from highs led to a strong opening with indices sustaining gains throughout the day. The broader markets saw energetic buying momentum across PSU basket and sectors like paints and specialty chemicals,” S Ranganathan, head of research at LKP Securities said.

After two consecutive quarters of contraction, the Indian economy has finally entered an expansionary path.

The gross domestic product (GDP) grew 0.4% in the October-December

2020 period compared with the same period a year back, data released by the National Statistics Office on Friday showed.

High-frequency indicators were pointing towards the fact that the domestic economy is slowly entering the recovery path.

Vinod Nair, head of research at Geojit Financial Services said, “Domestic markets kick-started the month on a strong footing with increased optimism led by GDP reaching positive numbers, improving auto numbers and steady PMI manufacturing data.”

All of the 19 sectoral indices except telecom ended in the green.

Auto, private banks and metals indices witnessed sharp rally ranging from 1.5% to 2.5%. Notably, volatility index softened by over 8%, which offers comfort, Binod Modi, head-strategy at Reliance Securities.

Smallcap and largecap indices outperformed the benchmark-rising 1.61% and 1.56%, respectively. While midcap index underperformed the Sensex, gaining 1.46%.

Elsewhere in Asia, bourses closed higher amid stability in bond markets after last week’s turmoil. Progress in the US stimulus package also lent some support to investor sentiments globally.

Global markets were on an upward rally owing to the much-anticipated US stimulus package being approved and reports on progress in the vaccines.