Sensex, Nifty Surge On Strong September Quarter Economic Growth Data


The Indian equity benchmarks ended higher on Wednesday as investor sentiment got a boost from strong Gross Domestic Product (GDP) data that was announced after market hours on Tuesday. The Sensex rose as much as 782 points and Nifty 50 index briefly moved above its important psychological level of 17,200 led by gains in Reliance Industries, ICICI Bank, Axis Bank, HDFC, State Bank of India and HDFC.

The Sensex ended 620 points higher at 57,685 and Nifty 50 index climbed 184 points to close at 17,167.

Indian economy grew at the fastest pace of any major economy in the July-September quarter data released by government showed. Gross domestic product expanded 8.4 per cent in the September quarter from a year earlier, statistics ministry data showed on Tuesday, in line with 8.4 per cent growth predicted in a Reuters poll and compared with a 20.1 per cent expansion in the previous quarter.

“If Nifty is able to sustain above 17,200, it can witness a positive momentum in the market which can lead to the higher levels near 17,600,” said Vijay Dhanotiya, senior research analyst at CapitalVia Global Research.

Twelve of 15 sector gauges compiled by the National Stock Exchange ended higher led by the Nifty PSU Bank index’s Nearly 3 per cent gain. Nifty Bank, Auto, Financial Services, IT, Media, Metal, Private Bank, Realty and Oil & Gas indices also rose between 1-2.3 per cent.

On the other hand, Nifty Pharma, Healthcare and Consumer Durable indices ended lower.

Mid- and small-cap shares ended mixed as Nifty Midcap 100 index rose 1 per cent while Nifty Smallcap 100 index ended on a flat note.

IndusInd Bank was top Nifty gainer, the stock rose 6 per cent to close at Rs 934.50. JSW Steel, Tata Motors, Axis Bank, Adani Ports, State Bank of India, Maruti Suzuki, Hindalco and tech Mahindra also rose between 3-5 per cent.

On the flipside, Cipla, Divi’s Labs, UltraTech Cement, Dr Reddy’s Labs, Bharti Airtel, Indian Oil, Sun Pharma, Tata Consumer Products, Titan and Kotak Mahindra Bank were among the losers.

The overall market breadth was positive as 1,909 shares ended higher while 1,349 closed lower on the BSE.

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