Sensex ends up 116 pts on smart GDP data

Similarly,the National Stock Exchange’s 50-share index Nifty too settled with a smart gain of 22.70 points at 5,862.70.

Marketmen said Indian economy’s 8.9 per cent growth in the second quarter of the current fiscal,up from 8.7 per cent in the corresponding period a year ago,was better than the street expectations,which boosted the investor sentiment.

“The economy grew at a faster pace than anticipated in the second quarter of the current fiscal year,prompting a recovery in the stock market and lifting hopes of meeting the Government’s annual target of 8.75 per cent,” IIFL Head of Research Amar Ambani said.

Rally in the market was led by a handsome rebound in the realty counters,which were reeling under pressure due to the ongoing loan bribery scam.

For the first time in six trading sessions,the realty giant DLF registered a gain of 7 per cent to settle at Rs 307.25. DB Realty also soared by 5 per cent,hitting an upper circuit on BSE. Significant gains in shares helped the realty index emerge as the best performer among the thirteen sectoral indices.

“It was a good day for the realty shares which were seen back in action today. The stocks witnessed handsome buying amid reports that Congress ally Sharad Pawar warned the government not to target India Inc over 2G scam,” CNI Research CMD Kishore P Ostwal said.

Telecom giants Bharti Airtel and Reliance Communications also stole the show with the former surging 6.45 per cent and the latter gaining 3.41 per cent. RCom,which was under pressure due to allegations relating to the 2G spectrum row,today snapped its five-day losing streak on value buying.

Besides,the country’s largest lender State Bank of India became the biggest contributor in the overall Sensex gain. The scrip advanced by 3.97 per cent while the private sector peer HDFC Bank ended with a margin loss of 0.10 per cent.

Meanwhile,the private sector lender ICICI and Mukesh Ambani-led RIL,were primarily responsible for offsetting the gains in the 30-share index,10 of which ended in losses.

While ICICI slipped by 0.90 per cent,RIL saw a decline of 1.14 per cent.

Apart from RIL and ICICI,Tata Steel,which shed 1.48 per cent,was the biggest laggard on the Sensex. Copper producer Sterlite Industries also played a spoil-sport with a loss of 0.12 per cent.

Among the other metal counters,Jindal Steel and Hindalco rose by 2.29 per cent and 2.16 per cent respectively.

Other major gainers on the street were — Tata Motors (4.31 per cent),and Reliance Infra (2.6 per cent).

“The volume and the turnover were much better than on Monday,pointing to a broad-based improvement in sentiment,” Ambani said.

The advance in the Indian market came despite weakness in other Asian markets,especially in the Japanese and Chinese indices which slipped by 1.87 per cent and 1.61 per cent respectively.

Also,the European markets reversed their opening gains to trade flat even as the euro slipped below the 1.30 mark against the US dollar.