Sensex ends higher despite sharp fall in GDP numbers for Q1

New Delhi: The drastic fall in GDP numbers was expected to spook the stock markets. As any other economic convulsion has a strong bearing on stock exchanges, the -23.5% fall in GDP growth rate could have meant over a 1000 points fall. But, to everyone’s surprise, the markets rather picked up and ended in the green.

It ended 270 points on Tuesday, mostly riding on Supreme Court verdict giving telecom operators 10 staggered years for clearing AGR dues.

Investors brushed aside nearly 24% fall in the economy during Q1 FY21.

The BSE S&P Sensex closed 273 points or 0.71 per cent up at 38,901 while the Nifty 50 gained by 83 points or 0.73 per cent at 11,470. Except for Nifty IT and banking stocks, which fell marginally, all sectoral indices at the National Stock Exchange were in the green with Nifty metal gaining by 3.1 per cent, pharma by 2.3 per cent and FMCG by 1.3 per cent.

Among stocks, Bharti Airtel was the top winner with a gain of 7.1 per cent at Rs 549.60 per share after the Supreme Court allowed telecom operators to pay adjusted gross revenue (AGR) dues over 10 years.

Vodafone Idea, however, dipped by 12.7 per cent to Rs 8.89 per share. Metal majors gained substantially with JSW Steel up by 6.4 per cent to Rs 287.10 per share, Hindalco by 5.2 per cent and Tata Steel by 4.1 per cent.
The other prominent gainers were Asian Paints, Bajaj Finance, Bajaj Finserv, NTPC, Cipla and State Bank of India.

However, Bharti Infratel dipped by 5.1 per cent to Rs 188.40 per share. ONGC, IndianOil Corporation, Coal India, Tech Mahindra and Tata Consultancy Services, too, traded with a negative bias.

Meanwhile, Asian stocks edged higher after the Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) showed China’s factory activity expanded at the fastest pace in nearly a decade in August due to first increase in new export orders this year.