Sensex recovering 230 points in early session on Wednesday

The Sensex left its two days of losses behind by recovering 230 points in early session on Wednesday, propped up by fresh buying triggered by positive GDP data for the December quarter amid favourable Asian cues. The impact was such that even the broader NSE Nifty took back the 8,900-mark. The 30-share index, which had lost 149.65 points in the previous two sessions, was trading higher by 229.56 points, or 0.80%, at 28,972.88. All sectoral indices, led by realty, bank and metal, moved up, with gains of up to 1.29%.
The GDP projection for the fiscal at 7.1% in the second advance estimate is the same as the first one put out by the CSO in January. Besides, other Asian markets showed up firm, boosted by better-than-expected improvement in Chinese factory activity, traders said. Hong Kong’s Hang Seng was up 0.08% and Japan’s Nikkei went up 0.54% while Shanghai Composite index rose 0.40% in early trade on Wednesday. The US Dow Jones Industrial Average, however, ended 0.12% lower on Tuesday.
The Nifty climbed 61.80 points, or 0.70%, to 8,941.40. The risk appetite improved after the Central Statistics Office yesterday showed that India’s economy expanded by 7% in the third quarter, belying all fears of the note ban puncturing economic activity. The government pegged GDP growth at a higher-than-expected 7.1% for 2016-17 despite the cash blues, with manufacturing and agriculture doing exceptionally well, which in turn made India retain the tag of the world’s fastest growing large economy.
Majesco rose as much as 9.80% to Rs 376.90 after the company said that its insurance arm and a subsidiary launched two new solutions. The stock had underperformed the market over the past one month till 28 February 2017, sliding 10.67% compared with 3.09% gains in the Sensex. The scrip had also underperformed the market in past one quarter, declining 13.65% as against Sensex’s 9.08% rise.
MOIL shares lost as much as 3.77% to Rs340.80 per share after it cuts prices by 15-25% across products.MOIL produces and sells different grades of manganese ore.
Tata Teleservices (Maharashtra) Ltd shares gain 14.46% to Rs9.18 per share after a proposed a resolution to the Delhi High Court on settling a dispute over the $1.17 billion due to the Japanese telco for exiting their joint venture, Tata Teleservices, ending two years of public acrimony.
BSE Sensex trades higher by 151 points, or 0.53%, to 28,895, while the Nifty 50 rises 41 points, or 0.46%, to 8,921.
Amtek Auto share gain as much as 5.91% to Rs40.30 per share as it is planning to raise Rs117.5 crore by issuing equity shares to promoters on a preferential basis for which it will seek shareholders’ approval.
Prism Cement shares gain as much as 8.55% to Rs103.50 per share after it said it has secured supply of 18,300 tonnes per annum of coal from state-owned CIL arm Southern Eastern Coalfields Ltd.
The home currency opened at 66.79 against the US dollar. At 9.10 am, rupee was trading at 66.80 per US dollar—down 0.16% from its previous close of 66.69. So far this year, it has risen 1.69%.
The 10-year bond yield was trading at 6.907%, compared to Tuesday’s close of 6.871%. Bond yields and prices move in opposite directions.
DLF Ltd shares gained as much as 3.02% to Rs155 per share after it announced buyer for unit DLF Cybercity Developers after audit committee meets today. DLF is in talks with Blackstone, GIC to sell the stake.
Among the Asian currencies, South Korean won lost 0.807%, Japanese yen up 0.371%, Indonesian rupiah 0.187%, Malaysian Ringgit 0.173%, Singapore dollar 0.164, China renminbi 0.128%, Taiwan dollar 0.085%, China Offshore 0.095%, Philippines peso 0.087%, Thai Baht 0.0907%, Hong Kong Dollar 0.003%.