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Markets shake off slow GDP growth; Sensex rises 71 points

Markets shake off slow GDP growth; Sensex rises 71 points

Mumbai: The benchmark BSE Sensex gained over 71 points to 31,801.80 in early trade on continued buying by domestic institutional investors despite weak economic growth data for the June quarter.

Brokers said investors were seen creating new positions following the beginning of the September futures and options (F&O) series which lifted the key indices.

Besides, a firm trend overseas too influenced sentiment.

The 30-share index was up by 71.31 points, or 0.22 per cent, to 31,801.80 with the sectoral indices led by healthcare, realty, metal and auto posting gains.

The NSE Nifty advanced by 20.10 points or 0.20 per cent to 9,938.10.

Data showing that foreign institutional investors (FIIs) which had been net sellers on the Indian markets, bought shares worth Rs 77.58 crore in Thursday’s trade too influenced sentiments.

Major gainers in early trade included Dr Reddy’s, SunPharma, Lupin, Reliance Industries, Tata Steel, Kotak Bank and SBI, rising by up to 7.66 per cent.

Stocks of auto makers such as Maruti Suzuki, Tata Motors, and Bajaj Auto were in better form and rose up to 1.66 per cent ahead of August month’s sales numbers, to be released later in the day.

India’s GDP growth slumped to a three-year low of 5.7 per cent during April-June — lagging China for the second straight quarter — as manufacturing slowed ahead of the GST launch amid demonetisation effect.

Among other Asian markets, Japan’s Nikkei was up 0.20 per cent, Hong Kong’s Hang Seng gained 0.31 per cent, while Shanghai Composite index rose 0.39 per cent in early trade.

The US Dow Jones Industrial Average ended 0.25 per cent higher in Thursday’s trade.

PTI