Better than expected economic growth numbers for the second quarter this fiscal helped stock markets erase early losses on Tuesday, with the BSE benchmark Sensex ending the day with a gain of over 116 points.
Spurred by 8.9 per cent GDP growth recorded during July-September quarter, and a firm European trend, funds bought stocks pushing up the BSE benchmark index.
The Sensex, which had lost nearly 1 per cent at the outset, bounced back to close with a gain of 116.15 points at 19,521.25 on revival of investor confidence. It had touched the day’s low of 19,218.02.
The broad-based National Stock Exchange index Nifty rose by 32.70 points to 5,862.70, after dipping to the day’s low of 5,768.35 points.
Investor confidence regained on reports that the economy grew by 8.9 per cent during Q2, from 8.7 per cent in the same period last year, driven by better performance of agriculture and manufacturing sectors.
Trading sentiment further turned bullish as European stocks opened higher this afternoon.
Besides, market seemed to respond positively to the assurance by Finance Minister Pranab Mukherjee that investor money is safe as far as fallout of the housing finance racket was concerned. Last week, the CBI arrested eight officials of several public sector banks and institutions.
The realty stocks, which had touched recent lows after the outbreak of the bribery-for-loans scam, mainly led the upward march. The realty sector index was the best performer by rising 5.67 per cent to 2,925.40.
The consumer durable index was second best performer, rising 2.08 per cent to 6,434.44 followed by power sector index by 1.84 per cent to 2,891.48.
Other supporter to the market were stocks in Power, PSU, FMCG, Auto, Teck and Banking sectors. However, oil and gas sector declined by 0.56 per cent to 10,062.08 as stocks of Reliance Industries, GAIL India and BPCL closed lower.
As the buying activity spilled over a wide-front, smallcap index gained 1.90 per cent to 9,744.71 and midcap index by 1.39 per cent to 7,764.02.
