Sensex Falls 86 Points as Lower GDP Makes Sentiments Bearish

Friday, August 31, 2012
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Mumbai: A benchmark index of Indian equities markets was trading 86.93 points lower in afternoon trade as fresh data showed India's gross domestic product (GDP) grew at a much lower pace of 5.5 percent in the first quarter of the current fiscal.

GDP was down from an 8 percent growth rate achieved during the like period of 2011-12.

Scrips of metals, auto and capital goods were worst hit, while all other sectoral indices of the Bombay Stock Exchange (BSE) were down.

The 30-scrip sensitive index (Sensex) of the BSE, which opened at 17,557.62 points, was ruling at 17,454.71 points, 0.50 percent or 86.93 points down from its previous day's close at 17,541.64 points.

The Sensex touched a high of 17,557.62 points and a low of 17,430.59 points in intra-day trade. Sensex midcap was up 17.00 points and smallcap was up 24.50 points.

Data released by Central Statistical Organisation (CSO) Friday showed the drop in GDP growth rate was mainly on account of a mere 0.2 percent growth in the manufacturing sector, against 7.3 percent in the previous fiscal, even as farm growth also dropped from 3.7 percent to 2.9 percent.

Surprisingly, construction and the services sector, which include insurance, finance and realty, grew at 10.9 percent and 10.8 percent, respectively. Output from these two groups had expanded by 3.5 percent and 9.4 percent in the first quarter of last fiscal.

Even the wider 50-scrip S&P CNX Nifty of the National Stock Exchange was ruling 0.78 percent or 41.40 points down at 5,273.65 points.

Main Sensex losers included Hero MotoCorp, down 46.70 points at Rs.1,778.35; Sterlite Inds, down 2.45 points at Rs.95.70; Coal India, down 8.25 points at Rs.352.25; Hindalco Inds, down 2.40 points at Rs.103.70; and BHEL, down 4.65 points at Rs.214.30.

Only eight companies out of 30 sensitive Sensex were gainers including Bharti Airtel, up 3.35 points at Rs.246.10; Cipla, up 4.95 points at Rs.377.00; ONGC, up 1.95 points at Rs.277.65; HDFC, up 5.10 points at Rs.728.95; and State Bank of India (SBI), up 12.15 points at Rs.1,852.40.

Source: IANS
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