Nifty marginally above 8150, Sensex in red; GAIL, Infosys drag

Moneycontrol Bureau11:55 am Momentum in economy: India probably gathered momentum to hold its ranking as the world's fastest growing large economy in the quarter through March, giving Prime Minister Narendra Modi more to celebrate after completing two years in office last week.

Modi swept to power promising to revitalise Asia's third-largest economy and, despite a dearth of private investment and shrinking exports, his policies are having some success as cooling inflation and lower interest rates have boosted consumer demand.

A Reuters survey of economists expected data out on Tuesday will show India's gross domestic product grew 7.5 percent year-on-year between January and March, faster than the previous quarter's 7.3 percent.

"This 7.5 percent growth, in a global slowdown environment, has a potential to pick up even more," Finance Minister Arun Jaitley said last week in general comments about the trends.

11:45 am Market outlook: With events such as a Fed rate hike and the Reserve Bank monetary policy lined up in June, shares could remain choppy in the near term, says Vibhav Kapoor of IL&FS.

But the medium term outlook remains strong even as two risks, a weak monsoon and Brexit, could upset the applecart.

In an interview with CNBC-TV18, Kapoor said that even as valuations from a short-term perspective may look expensive, investors should buy shares with a 18-24 month view.

IL&FS yearend target for the Nifty is at 8,700-9,100, which may go up to 8,800-9,400, he said.

11:30 am GDP poll: The fourth quarter FY16 gross domestic product (GDP) and gross value added (GVA), expected later today, are likely to meet the advanced estimates of 7.6 percent and 7.3 percent respectively. Agriculture data is expected to improve to 1.6 percent as against decline seen both year-on-year and quarter-on-quarter. Favorable rabi harvest and base effect will give the sector boost. Manufacturing, however, is unlikely to sustain at 12 percent. The estimates for manufacturing sector stands at 8.9 percent for Q4. Industries with construction are expected at 7.4 percent.

The market is still reeling pressure with the Nifty hovering 8150. The Nifty is down 19.45 points or 0.2 percent at 8159.05 and the Sensex is down 77.08 points or 0.3 percent at 26648.52. About 762 shares have advanced, 1322 shares declined, and 96 shares are unchanged.

Tata Motors, NTPC, Maruti, Tata Steel and Lupin are top gainers in the Sensex while losers are Sun Pharma, GAIL, Infosys, TCS and Bharti Airtel.

Gold futures were up by Rs 41 to Rs 28,644 per 10 gram as speculators raised their bets amid positive cues from global markets. Analysts attributed the rise in gold prices to a firming trend overseas.

Moreover, drop in the dollar also boosted demand for bullion as an alternative asset, they added. Meanwhile, gold was trading 0.64 per cent higher at USD 1,212.60 an ounce in Singapore.