Sensex Bounces Back by 223 Points This Week on Strong GDP Data

Sensex Bounces Back by 223 Points This Week on Strong GDP Data

Strong GDP data for the first quarter of the current fiscal, robust automobile sales for August coupled with resumption of buying by foreign funds helped the market to bounce back by more than 223 points to end the week at 18,221.43.

Healthy manufacturing data in China and better than expected GDP figures from Australia also supported Asia - Pacific stocks.

The BSE benchmark Sensex resumed higher at 18,063.48 and shot up further to 18,355.84, before ending the week at 18,221.43, a net rise of 223.02 points, or 1.24%.

In a positive development for investors, the Direct Taxes Code (DTC) bill has maintained the benefit of zero tax on long - term capital gains on sale of shares held for a period exceeding one year.

The government has delayed the implementation of DTC by one year to April 1, 2012. Earlier, the new tax regime was to come into effect from April 1, 2011.

On the macro front, India reported its strongest GDP number since the global financial crisis, expanding at the fastest pace in two and a half years. The gross Domestic Product (GDP) grew 8.8% in the April - June quarter.

The manufacturing sector expanded 12.4%, mining 8.9%, construction 7.5% and farm sector grew 2.8%. Output in combined sectors - trade, hotels, transport and communication - rose 12.2%. The economic growth can top 8.5% in the fiscal year ending March 2011.

The NSE 50-share Nifty also gained, zooming 70.70 points, or 1.31%, to end at 5,479.40 from its last close.

Source: http://economictimes.indiatimes.com/

Thank you,
Minita Aiya
Client Service Associate
DENIP Consultants Pvt. Ltd.