Markets end flat as Q3 GDP growth falters

Markets closed on a flat note amid growth concerns after a government release showed that the India's GDP for the third quarter was much lower compared to the corresponding quarter last year.

The Sensex closed at 17,753 up 22 points and the Nifty closed at 5,385 up 10 points. Earlier in the day, the markets opened on a firm note and the Sensex touched the high of 18,001 in the morning trades.

The GDP growth of 6.1% in the third quarter this fiscal, lowest in more than 2 years due to poor performance of the manufacturing, mining and farm sectors was not in line with the street expectations and dampened the
investor sentiment. Post this announcement selling pressure was seen in the capital goods, FMCG, banking and IT stocks.

The gross domestic product growth the in third quarter (October-December) last fiscal was 8.3%, as per the latest data released by the government today.

The other Asian markets ended the day in green. Nikkei ended higher by a point at 9,723, Hang Seng added 0.5% to close at 21,680 and the Taiwan ended at 8,121 levels, up 2%.

Back home, ONGC was the top gainer among the Sensex stocks, the stock jumped 3.5% to Rs 293 after the state-run oil exploration and production firm said that it will launch its share sale through an auction on Thursday.

Index heavyweight Reliance Industries also advanced nearly 3% in trades to shut shop at Rs 819. Wipro, Sterlite Industries, Tata Steel, Bharti Airtel, Bajaj Auto, Hindalco, Coa India and Sun Pharma also ended higher in trades today.

On the other hand, Larsen & Toubro was the top loser, down 3% to Rs 1,308 on reports that the joint venture between the company and Mitsubishi Heavy Industries emerged as the third lowest bidder for the Rs 16,000 crore power equipment orders from the state-owned company NTPC.

HDFC Bank, Jindal Steel, ITC, Hero MotoCorp, HDFC, Maruti Suzuki and Cipla also ended lower by 0.7-2.3%

each.

Oil & Gas, PSU, metal and realty stocks were on the buyers radar. The BSE Oil & Gas index was the top sectoral gainer, up 2.5% or 214 points to close at 8,712 levels. HPCL, Indian Oil, Oil India, BPCL, Gujarat State Petronet, petronet LNG, Cairn India and Gail India were among the prominent gainers from this space.

PSU stocks were in high demand on the bourses today on back of huge volumes. The BSE PSU index advanced 1.5% to 7,764 levels. Hindustan Copper, Andhra Bank, MMTC, STC, HPCL, Engineers India, Bharat Electricals and Allahabad Bank were among the top gainers.

Metal, Realty, Consumer Durables, IT, Power and Auto indices also ended higher in trades to day.

At the same time, Capital goods, FMCG, banking and auto stocks witnessed the selling pressure.

The BSE Capital Goods index shed 1.6% or 168 points to 10,426 levels. ABB, Siemens, Crompton Greaves, BEML, SKF India and Lakshmi Machine Works were among the top losers.

Stocks in news

Shares of rice exporters such as Kohinoor Foods, KRBL and LT Foods rallied in trades on hopes of higher export of basmati rice after the government had reduced the minimum export price (MEP).

Rico Auto Industries has rallied 16% to Rs 12.51 after the company said its board of directors have approved the proposed divestment of the entire 50% stake of the company in Continental Rico Hydraulic Brakes India Private Limited, a joint venture of the company with Continental AG, Germany.

Shares of tea manufacturing companies have extended gains on reports that wholesale tea prices are expected to rise by about 10-15% soon on the back of a faltering supply.

The broader markets ended higher. The BSE mid-cap index higher by 1.1% to 6,387 levels and the small-cap index ended higher by 42 points at 6,860 levels.

The overall breadth was positive as 1,593 stocks advanced while 1,295 stocks declined.

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