Promising GDP data boost markets, rupee on Thursday

Firing on all cylinders, India continues to maintain its streak of world-beating economic growth after GDP for the March quarter beat all expectations with a 6.1 per cent expansion that helped push the annual growth rate to 7.2 per cent.

Amid strong GDP data, continuous foreign fund inflows and a largely optimistic trend in Asian markets, equity benchmark indices bounced back to trade in the positive territory after decline in initial trade on Thursday. In another development, the rupee also gained 39 paise to 82.36 against the US dollar in early trade on Thursday as positive macroeconomic data strengthened investor sentiments.

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The growth was boosted by a 5.5 per cent expansion in agriculture and a 4.5 per cent growth in manufacturing. Other sectors of the economy – construction, services and mining – too posted handsome growth rates.

The economic expansion was recorded at 6.1 per cent during the March 2023 quarter, while it was 4.5 per cent in October-December and 6.2 per cent in July-September 2022. The growth was 13.1 per cent in April-June 2022, as per the data released by the National Statistical Office (NSO).

For the full 2022-23 fiscal (April 2022 to March 2023), the growth now stands revised to 7.2 per cent, above the earlier projection of 7 per cent but lower than the 9.1 per cent expansion in 2021-22.

Meanwhile, the 30-share BSE Sensex declined 77.28 points to 62,544.96 in early trade even after a positive beginning. The NSE Nifty dipped 15.35 points to 18,519.05. However, later both the benchmark indices bounced back and were trading in the green. The Sensex quoted 109.45 points higher at 62,731.69 and the Nifty traded with a gain of 36.75 points at 18,571.15.

From the Sensex pack, Bharti Airtel, Kotak Mahindra Bank, Maruti, Power Grid, Tata Motors, IndusInd Bank, NTPC, ITC and Bajaj Finance were the major laggards. Asian Paints, Hindustan Unilever, Tech Mahindra, Tata Consultancy Services, Wipro and Axis Bank were among the gainers.

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In Asian markets, Seoul quoted lower, while Tokyo, Shanghai and Hong Kong were trading in the green. The US markets ended lower on Wednesday. Firing on all cylinders, India continues to maintain its streak of world-beating economic growth after GDP for the March quarter beat all expectations with a 6.1 per cent expansion that helped push the annual growth rate to 7.2 per cent.

“A strong Q4 GDP data beating street expectations could bring in some cheers to investors and lift market sentiment,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd. Global oil benchmark Brent crude fell 1.20 per cent to USD 72.66 a barrel. Foreign Institutional Investors (FIIs) continued to remain net buyers as they bought equities worth Rs 3,405.90 crore on Wednesday, according to exchange data.

(With agency inputs)