Sensex, the benchmark index of Bombay Stock Exchange jumped over 370 points on better-than-expected gross domestic product (GDP) numbers and easing of concern over Dubai debt crisis on Monday. The GDP growth figure of 7.9 per cent had sentiments turn bullish after two days of bear phase and Sensex closed with 1.6 per cent gains.
Though the extent of the Dubai crisis is not known, market players said that India is unlikely to be affected, as our exposure to Dubai is very less. “The market on Monday gave a knee-jerk reaction to news of Dubai debt crisis,” said Anand Rathi, chairman, Anand Rathi Financial Services.
“The stronger than expected GDP growth number is mostly due to very large government spending and one can’t say this would be repeated. Though these numbers can’t be taken as indication of higher growth going forward, they do confirm that recovery process is on and improving in India,” said Rathi.
The Sensex opened the day at 16,655 and hit 17,026 points before closing with gain of over 294 points at 16,926. The S&P CNX Nifty of National Stock Exchange (NSE) closed 1.8 per cent or 91 points up at 5032 points. For economists and market players, the surprise in GDP numbers came from agriculture sector.