Markets surge on better than expected GDP numbers

Indian markets have picked up pace soon after making a mildly positive start, while the global cues are mixed. Traders are getting encouragement with India's Gross Domestic Product (GDP) growing at a rate of 7% in the October-December quarter of the fiscal year 2016-17 after factoring in the demonetisation impact. Also, according to the second advance estimates, released by the Central Statistics Office (CSO), the growth in GDP during 2016-17 is estimated at 7.1 percent as compared to the growth rate of 7.6 percent in 2015-16, which is much better than the economic survey and the RBI’s estimates. The other positive factor of the Second Advance Estimates of National Income, 2016-17 was India's per capita net national income expected to rise 10.2 percent to Rs 1,03,818 in the current fiscal. However, in the early deals there was some cautiousness with India's fiscal deficit touching Rs 5.64 lakh crore at the end of January, 105.7 percent of the full-year target, mainly due to lower realisation of non-tax revenue. Some pressure was also exerted by the lower opening of the rupee. Traders though went for buying getting boost from GDP data. On sectoral front, banking and realty have taken the lead, surging by over a percent, though some extended selling was being seen in oil & gas pack.

The BSE Sensex is currently trading at 28963.93, up by 220.61 points or 0.77% after trading in a range of 28824.17 and 29001.35. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.34%, while Small cap index was higher by 0.64%.

The top gaining sectoral indices on the BSE were Realty up by 1.21%, Bankex up by 1.03%, IT up by 0.82%, Healthcare up by 0.72% and TECK up by 0.63%, while Oil & Gas down by 0.44%, Energy down by 0.24% and Telecom down by 0.11% were the few losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 2.84%, HDFC up by 1.73%, Hero MotoCorp up by 1.50%, TCS up by 1.32% and Sun Pharma up by 1.26%. On the flip side, Tata Motors down by 0.68%, Mahindra & Mahindra down by 0.65%, Bharti Airtel down by 0.31% and NTPC down by 0.31% were the top losers.

Meanwhile, India’s gross domestic product (GDP) grew at 7 percent in the October-December quarter of the fiscal year 2016-17 as compared to 7.3 percent in the previous quarter. The Central Statistics Office, in its second advance estimate, forecasted growth for the fiscal at 7.1 percent, after factoring in the note ban impact. This is in line with its first advance estimate. For the second quarter of 2016-17, the CSO estimated GDP growth at 7.4 percent.

As per CSO data, GDP at constant (2011-12) prices in Q3 of 2016-17 is estimated at Rs 30.28 lakh crore, as against Rs 28.31 lakh crore in Q3 of 2015-16, showing a growth rate of 7.0 percent. GVA at basic prices at constant (2011-12) prices in Q3 of 2016-17 is estimated at Rs 28.02 lakh crore, as against Rs 26.28 lakh crore in Q3 of 2015-16, showing a growth rate of 6.6 percent over the corresponding quarter of previous year.

The ‘agriculture, forestry and fishing’ sector is likely to show a growth of 4.4 per cent in its GVA during 2016-17, as against the previous year’s growth rate of 0.8 per cent. The growth in the GVA at basic prices for 2016-17 from ‘mining and quarrying’ sector is estimated to be 1.3 percent as compared to growth of 12.3 percent in 2015-16. The growth in the GVA at basic prices for 2016-17 from ‘manufacturing’ sector is estimated to be 7.7 percent as compared to growth of 10.6 percent in 2015-16. GVA at basic prices for 2016-17 from ‘Electricity, gas, water supply and other utility services’ sector is estimated to grow by 6.6 percent, as compared to growth of 5.1 percent in 2015-16. GVA at basic prices for 2016-17 from ‘Construction’ sector is estimated to grow by 3.1 percent as compared to growth of 2.8 percent in 2015-16.

GDP at current prices in Q3 of 2016-17 is estimated at Rs 38.14 lakh crore, as against Rs 34.47 lakh crore in Q3 of 2015-16, showing a growth rate of 10.6 percent. GVA at current basic prices in Q3 of 2016-17 is estimated at Rs 34.90 lakh crore, as against Rs 31.71 lakh crore in Q3 of 2015-16, showing a growth of 10.1 percent.

Private Final Consumption Expenditure (PFCE) at current prices is estimated at Rs 88.40 lakh crore in 2016-17 as against Rs 79.00 lakh crore in 2015-16. At constant (2011-12) prices, the PFCE is estimated at Rs 68.26 lakh crore in 2016-17 as against Rs 63.66 lakh crore in 2015-16. Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs 17.23 lakh crore in 2016-17 as against Rs 14.12 lakh crore in 2015-16. At constant (2011-12) prices, the GFCE is estimated at Rs 12.91 lakh crore in 2016-17 as against Rs 11.03 lakh crore in 2015-16. Gross Fixed Capital Formation (GFCF) at current prices is estimated at Rs 40.97 lakh crore in 2016-17 as against Rs 39.89 lakh crore in 2015-16. At constant (2011-12) prices, the GFCF is estimated at Rs 35.55 lakh crore in 2016-17 as against Rs 35.35 lakh crore in 2015-16.

The CNX Nifty is currently trading at 8935.70, up by 56.10 points or 0.63% after trading in a range of 8898.60 and 8950.25. There were 37 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 2.73%, HDFC up by 1.74%, Bank Of Baroda up by 1.48%, Hero MotoCorp up by 1.42% and TCS up by 1.33%. On the flip side, Idea Cellular down by 1.38%, BPCL down by 1.26%, Tata Motors down by 0.81%, Ultratech Cement down by 0.57% and Mahindra & Mahindra down by 0.46% were the top losers.

The Asian markets were trading mostly in green, FTSE Bursa Malaysia KLCI was up by 2.42 points or 0.14% to 1,696.19, Shanghai Composite was higher by 12.44 points or 0.38% to 3,254.17, Hang Seng was up by 47.72 points or 0.2% to 23,788.45, Nikkei 225 surged by 230.53 points or 1.21% to 19,349.52.

On the other hand, Taiwan Weighted declined by 46.2 points or 0.47% to 9,704.27 and Jakarta Composite decreased by 20.25 points or 0.38% to 5,366.44.