Sensex Outperforms Global Markets On Strong Q4 GDP

Indian stock markets outperformed global markets in trades on Wednesday as the Indian economy continued to lead as the world's fastest growing large economy, with gross domestic product expanding at a stronger-than-expected rate of 7.9 per cent. Meanwhile, other Asian stocks were on a weak footing on Wednesday as a slip in crude oil prices dampened investors' appetite for riskier assets, while the recently bullish dollar stalled against the euro and yen following a mixed bag of U.S. economic data. Japan's Nikkei lost more than one per cent as the yen firmed. European markets were also trading on a weak note with Germany's DAX, France's CAC40 and Britain's DAX falling 0.6-0.7 per cent each. The strong headline number adds to optimism about India's economy, with shares gaining around 4 per cent in May to become Asia's best performer last month on forecasts of an above average monsoon and upbeat earnings from blue chip companies. Separately, a business survey showed manufacturing activity increased for a fifth consecutive month in May. "I think the GDP data is basically one driving factor...and apart from GDP data it is the earnings growth and allocation of higher sum of money by global FIIs to local markets...all these three factors are definitely playing a role in bringing the market up now," said Deven Choksey, managing director at KR Choksey Securities. "The GDP has started looking up mainly because of revival of the projects that were stalled in the economy earlier." The Sensex ended 0.17 per cent or 46 points higher at 26,714 and Nifty advanced 0.24 per cent or 20 points at 8,180. Shares of ITC rose nearly 3 per cent, after the GDP data showed consumer spending rose 8.3 per cent in Jan-March from a year earlier. Among other gainers, Adani Ports and SEZ, Bharti Airtel, TCS, Lupin, Eicher Motors and Wipro were also among the gainers from the Nifty-50 basket of stocks. Airline stocks fell after the government increased jet fuel prices by 9.2 per cent. Jet Airways (India) Ltd slipped 2 per cent, while InterGlobe Aviation Ltd lost 3.77 per cent.

Sensex Outperforms Global Markets On Strong Q4 GDP

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