Sensex, Nifty gain as strong Q3 GDP growth lifts mood on Dalal Street

Benchmark stock market indices registered strong gains in early trade on Friday, supported by gains in energy stocks, strong GDP growth in the third quarter and US inflation data.

The S&P BSE Sensex was up 639.51 points at 73,139.81 at 10:02 am, while the Nifty50 rose 201.65 points to 22,184.45. Broader market indices also opened the day on a positive note.

Most of the Nifty sectoral indices opened the trading session on a positive note, including heavyweights Nifty Bank and Nifty Financial Services. Both were up nearly 1 per cent, contributing to the strong rally on Dalal Street.

The top five gainers on the Nifty50 were JSW Steel, BPCL, Tata Steel, ONGC and L&T. On the other hand, the top losers were Apollo Hospitals, Cipla, Sun Pharma, Infosys and Dr Reddy’s.

The biggest driver behind the market rally in early trade was faster-than-expected GDP growth in the third quarter.

While economists and experts expected India’s growth to be modest in Q3 at below 7 per cent, the data released on Thursday showed that the economy grew at over 8 per cent, bettering both year-on-year and quarter-on-quarter numbers.

Another factor that contributed to the positive market trajectory was key US inflation data that was mostly in line with expectations.

Deven Mehata, research analyst at Choice Broking, said, “India’s gross domestic product (GDP) grew 8.4 per cent in the December quarter, data released by the Ministry of Statistics and Programme Implementation on February 29 showed, blowing all expectations. This GDP growth will help markets to move higher.”

“The FII’s fund inflow can be witnessed based on the GDP numbers. Investors should keep holding long positions for the long term. Traders are advised to purchase on dips with a strict stop loss of 21,800 on closing basis,” he added.