MUMBAI: Stock markets on Wednesday cheered the robust growth numbers put out by the government the previous day, with the Sensex rising to its highest in seven months in afternoon trade, before weak global cues brought the BSE benchmark down.
The Sensex opened at 26,684 points and reached a high of 26,857, before closing at 26,668, a rise of 0.1%, or 46 points.
The broader NSE Nifty rose 0.2%, or 20 points, to 8,180.
The rupee meanwhile weakened 0.29% to a one-week low of 67.45 against the US dollar, on reports that RBI governor Raghuram Rajan doesn’t want an extension of his term, though Prime Minister Narendra Modi wants him to stay on.
The Indian economy gathered momentum during the January-March quarter to extend its lead as the world’s fastest-growing larg e economy, with GDP expanding at a stronger-than-expected rate of 7.9%.
The Sensex gainers were led by economy stocks, such as, Adani Ports (up 5%), Asian Paints (up 3.5%) and Bharti Airtel (up 3.1%).
“Encouraging Q4 GDP of 7.9% buoyed investor confidence in the market, while weak global cues have affected the pace of recovery,” said Vinod Nair of Geojit BNP Paribas. “Asian and European market sagged as a slip in crude oil prices dampened investors’ appetite for emerging markets.”
“Given the expectation of normal monsoon and consequent revival in rural demand, the domestic consumption story remains intact for India,” said Abheek Barua of HDFC Bank.