Q2 GDP pushes mkts higher; all sectoral indices in green

At 12:18 hours IST, buying across all the sectors and better-than-expected growth in Q2 GDP (gross domestic product) numbers pushed the Nifty over 100 points higher and the Sensex over 300 points. Metal, technology, auto, capital goods and oil & gas were the leading sectors.

India's GDP came in at 7.9% in the second quarter as compared to 6.1% quarter-on-quarter and 7.7% year-on-year. For the first-half of the year, GDP growth stood at 7% as against 7.8% YoY.

Farm sector growth came in at 0.9% versus 2.7% YoY. Manufacturing grew 9.2% as against 5.1% YoY. The mining space posted the highest growth at 9.5% as compared to 3.7% YoY, while construction saw degrowth at 6.5% versus 9.6% YoY.

Keki Mistry, MD, HDFC Bank, and MD Mallya, CMD, Bank of Baroda, see full year GDP at over 6.5%. Adi Godrej, CMD, Godrej Group, sees it crossing 7% for the entire year.

Rajeev Malik of Macquarie Capital Securities expects 8% GDP growth in FY11. Godrej is more optimistic. He expects it to cross the 9% mark.

The 30-share BSE Sensex was trading at 16,958, up 326 points and the Nifty was at 5,044, up 102 points. The broader indices were up around 2%, as about 2,096 shares advanced while 760 shares declined on the BSE. Nearly 577 shares were unchanged.

Larsen and Toubro is all set to ink a joint venture agreement with the Nuclear Power Corporation of India for setting up a Rs 2,000-crore project to make forgings for nuclear power plants. The stock was up 2%.

VS Gadhvi, Managing Director of Gujarat Mineral Development Corporation (GMDC) sees growth doubling by the end of next financial year. He believes there are no caveats to the mining policy, and says, “The Gujarat government has put the entire mining policy on fast track." The stock was up nearly 10%.

In the largecaps, Suzlon Energy, Hindalco, Tata Motors, Tata Steel, Sterlite Industries and Bharti Airtel rallied 4-5%. However, only Power Grid Corporation lost 2% as MSCI removed the stock from India Index. Heavyweight SBI was flat.

In the midcap space, Thomas Cook was up 11.67%. GMDC, IBN18 Broadcast, HDIL and Wockhardt gained 5.5-9% while Shriram City fell 4%. Glenmark was down 2.85% and Nagarjuna Construction down 1.46%. Emami and ING Vysya Bank slipped 0.8-1%.

In the smallcap space, Cambridge Solutions shot up nearly 20%. Resurgere Mines, Ganesh Housing, Infotech Enterprises and Atlanta were up 7-13%. However, PVP Ventures, Jindal Worldwide, Zodiac Clothing, Advani Hotels and EIH Associated Hotel declined 2-4.5%.

Tata Steel, SBI, HDIL, Suzlon Energy, Thinksoft and ICICI Bank were most active shares on the bourses.

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