Broader markets, banking stocks gain post GDP numbers

NEW DELHI: Although the Sensex was showing weakness in the afternoon trade post the GDP numbers on Friday, the BSE Banking index moved in the positive terrain after the government informed the economy grew 5.5 per cent in the April-June quarter, higher than the expectations of 5.3 per cent growth.

In the broader market, the BSE midcap index and the BSE smallcap index were trading 0.5 per cent higher. The Sensex, however, was trading 0.3 per cent lower at 17,490.

An ET Now poll had predicted a growth of 5.2 per cent. The FY13 GDP growth estimates in the poll ranged between 5.5-6 per cent.

“We believe that the markets have largely factored in a growth rate of 5%-5.5%. So the GDP data is unlikely to have a dramatic impact on the markets,” Dinesh Thakkar, chairman & managing director, Angel Broking, said.

Among the sectoral indices, the BSE Banking index surged over 0.3 per cent, led by gains in public sector banks such as State Bank of India, Union Bank of India, Bank of India, Canara Bank and Punjab National Bank after the April-June GDP data showed the farm sector grew more strongly than expected, easing worries of rural non-performing assets.

At 12:00 pm, State Bank of India was trading 1 per cent higher at Rs 1859, Union Bank of India surged 2.5 per cent to Rs 156.40, Bank of India advanced 0.9 per cent to Rs 259.40 and Punjab National Bank was trading 0.2 per cent higher at Rs 680.

“Post the GDP numbers, the Nifty has taken good support around 50-DMA levels. If the index holds on to levels of 5255-5220 on the Nifty for the coming week, it can again see 5450 on the higher side,” A.K. Prabhakar, Senior Vice President - Equity Research at Anand Rathi, said.

“Among the banking stocks, State Bank of India, ICICI Bank and HDFC are likely to lead the rally in the coming week followed by fertilizer stocks which saw pick up in demand after late monsoon revival and stocks like Rallis, Coromandel and GSFC saw some positive bias,” added Prabhakar.