Stock markets: Equity benchmark indices declined in initial trade on Thursday but soon bounced back to trade in the positive territory amid strong GDP data, continuous foreign fund inflows and a largely optimistic trend in Asian markets. The 30-share BSE Sensex declined 77.28 points to 62,544.96 in early trade even after a positive beginning.
The NSE Nifty dipped 15.35 points to 18,519.05.
However, later both the benchmark indices bounced back and were trading in the green. The Sensex quoted 109.45 points higher at 62,731.69 and the Nifty traded with a gain of 36.75 points at 18,571.15. From the Sensex pack, Bharti Airtel, Kotak Mahindra Bank, Maruti, Power Grid, Tata Motors, IndusInd Bank, NTPC, ITC and Bajaj Finance were the major laggards.
Asian Paints, Hindustan Unilever, Tech Mahindra, Tata Consultancy Services, Wipro and Axis Bank were among the gainers. In Asian markets, Seoul quoted lower, while Tokyo, Shanghai and Hong Kong were trading in the green.
The US markets ended lower on Wednesday.
India's economic growth continues to rise
Firing on all cylinders, India continues to maintain its streak of world-beating economic growth after GDP for the March quarter beat all expectations with a 6.
1 per cent expansion that helped push the annual growth rate to 7.2 per cent.
"A strong Q4 GDP data beating street expectations could bring in some cheers to investors and lift market sentiment," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Global oil benchmark Brent crude fell 1.20 per cent to USD 72.66 a barrel. Foreign Institutional Investors (FIIs) continued to remain net buyers as they bought equities worth Rs 3,405.90 crore on Wednesday, according to exchange data.
In the US, veering away from a default crisis, the House approved a debt ceiling and budget cuts package late on Wednesday, as President Joe Biden and Speaker Kevin McCarthy assembled a bipartisan coalition of centrist Democrats and Republicans against fierce conservative blowback and progressive dissent.
Snapping its four-day rally, the Sensex fell 346.89 points or 0.55 per cent to settle at 62,622.24 on Wednesday. The Nifty declined 99.45 points or 0.
53 per cent to end at 18,534.40.
There are many positives going in favour of the ongoing rally. One, the US House of Representatives has passed the US debt ceiling bill indicating that the debt impasse will be resolved. Two, FPI investment in India continues with big investments during the last three days.
Rupee rises 39 paise against US dollar
Meanwhile, the rupee gained 39 paise to 82.36 against the US dollar in early trade on Thursday as positive macroeconomic data strengthened investor sentiments.
At the interbank foreign exchange, the domestic unit opened at 82.54 against the dollar and then rose to 82.36, registering a gain of 39 paise over its previous close. On Wednesday, the rupee closed at 82.75 against the US currency.
On the domestic macroeconomic front, the Centre's fiscal deficit narrowed to 6.4 per cent of the GDP in 2022-23 from 6.71 per cent in FY22.
Unveiling the revenue-expenditure data of the Union government for 2022-23, the Controller General of Accounts (CGA) said the fiscal deficit in absolute terms was Rs 17,33,131 crore (provisional), marginally down from the amount projected in the Revised Estimates (RE) in the Budget.
Moreover, according to official figures released on Wednesday, India's economy grew by 6.1 per cent in the March quarter of 2022-23, pushing the annual growth rate to 7.2 per cent on account of better performance by agriculture, manufacturing, mining and construction sectors.
(With inputs from PTI)