Sensex jumps over 800 points after impressive GDP data
[ad_1]
New Delhi (Uttam Hindu News): The market has got a big dose of better than expected GDP growth rate in the third quarter. The growth rate was an impressive 8.4 percent, which led to a huge surge in the market on Friday. V.K., chief investment strategist at Geojit Financial Services. Vijaykumar has said this.
BSE Sensex is trading 825.59 points higher at 73,320.87 points. There is a rise of 3 percent in Tata Steel, JSW Steel. On the other hand, Nifty is trading at 22,232.30 with an increase of 250 points. However, it is important to note that the Gross Value Added (GVA) has come down to 6.5 percent. The gap between GDP growth and GVA is due to a 32 per cent increase in net indirect taxes, he said. Important from the GDP figures are 11.6 percent growth in manufacturing, 9.5 percent growth in construction and 10.6 percent growth in capital formation.
Impressive GDP figures provide fundamental support to the market. Large caps like RIL, Bharti Airtel, L&T and ICICI Bank have the potential to lead the rally. He said weak private consumption data will impact consumer stocks like HUL. He said that going forward the market trend will be for large-caps to outperform compared to the broader market.
Devarsh Vakil, deputy head of retail research at HDFC Securities, said India’s GDP registered a strong growth of 8.4 per cent year-on-year in the third quarter (October-December), surpassing analysts’ expectations. Data released on Thursday by the National Statistical Office (NSO) showed it was 8.1 percent in the previous quarter. The numbers for the first and second quarters have also been revised downwards to 8.2 percent (against 7.8 percent) and 8.1 percent (against 7.6 percent), respectively.
[ad_2]
Source link
