Stock Market: GDP, China unleash bulls on bourses

Spread the love

By S Jha

New Delhi, September 1: The Dalal Street gave a rousing reception to the robust economic growth in the first quarter of the current fiscal, with indices beating the Friday blues to scale higher. Nifty cruised past the congestion zone to close at 19435, while the Bank Nifty also spurted during the day to take the level of 44500.

Nifty, according to the market participants, faced sideways actions and the level of 19375 was being watched out. Both the indices have closed above the comfort zones to give comforts to the investors, who are hoping that the corrective phase in the indices may be finally over.

While the indices were stuck in the congestion zone for the lack of leadership, there were plenty of the heavyweights gaining strongly to take the market on the firm road ahead. While the Q1 GDP growth of 7.8 per cent gave the immediate trigger for the market to rise, the report from China of stimulus package to boost the construction sector got the metal pack firing all cylinders with the likes of Tata Steel, Hindalco, Jindal Steel, and others firing up.

The gain in the construction sector was also reflected strongly in the Q1 GDP growth, and this took the cement firms on robust gain path. The likes of India cement gained over 10 per cent during the day.

The power sector has been the theme of the stock market for the past few months. NTPC led the show for the power sector, sharply gaining over four per cent. The Indian Energy Exchange also joined the show, gaining over four per cent.

The PSU theme with rail and defence themes continue to buzz in the market. The likes of BHEL, which has been steadily gaining, zoomed on Friday. BHEL gained over 10 per cent, while Rail Tel spurted by 16 per cent. MTNL too logged in gains of 11 per cent. The midcap IT stocks extended their gains, with Persistent Systems and Birlasoft leading the show in the indices.