Market soars as investors cheer Q3 GDP data
Mumbai: Benchmark BSE Sensex surged nearly 750 points and NSE Nifty rallied over 232 points on Monday as investors cheered the domestic economy returning to positive territory after two-quarters of contraction. The 30-share BSE index briefly traded above the 50,000-mark in day trade before closing at 49,849.84, showing a rise of 749.85 points or 1.53 per cent.
Of the Sensex constituents, 29 closed with gains. Likewise, the NSE barometer Nifty settled with a gain of 232.40 points or 1.60 per cent at 14,761.55. Top performers were PowerGrid, ONGC, Ultratech Cement, Asian Paint, Kotak Bank and Titan – rising as much as 5.94 per cent. "Positive global cues and US yields retreating from highs led to a strong opening today with Indices sustaining gains throughout the day. The broader markets saw energetic buying momentum across PSU basket and sectors like Paints & Speciality 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 per cent 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." The auto sector was in focus as sales numbers for February were in favour of manufacturers. 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 per cent to 2.5 per cent. Notably, volatility index softened by over 8 per cent, which offers comfort, Binod Modi, Head - Strategy at Reliance Securities.