Sensex ekes out small gains, Nifty slips below 12,050; telecom stocks rally
Investors remained on the edge after India’s GDP growth slumped to 4.5 per cent in Q2.
Positive global markets limited losses for Indian stocks.
The 30-share Sensex closed 0.02 per cent or 8.36 points higher at 40,802.17, while 50-share Nifty closed 0.07 per cent or 7.85 points lower at 12,048.20.
Economic growth in Asia’s third-largest economy slipped further to hit an over six-year low of 4.5 per cent. The previous low was recorded at 4.3 per cent in the January-March period of 2012-13. The Gross Domestic Product (GDP) growth was registered at 7 per cent in the corresponding quarter of 2018-19.
Market at a glance
The Bears were back on the bourses as gainers beat losers in the ratio of 1.5:1 on BSE.
BSE Midcap and BSE Smallcap indices sharply underperformed the frontline indices and closed 0.77 per cent and 0.39 per cent, lower respectively.
Among sectoral indices, BSE Telecom index stole the show with a 3.17 per cent rise, backed by an up to 40 per cent hike in tariffs by telecom majors. Bharti Airtel and Vodafone Idea jumped 4.17 per cent and 14.06 per cent, respectively.
BSE Auto index was the top loser with a 0.92 per cent decline, on dismal vehicle sales data for November.
Among Sensex stocks, 19 out of 30 Sensex stocks closed lower. Energy-to-telecom major Reliance Industries was the top contributor to the Sensex's gains. It contributed 108.75 points as it advanced 2.28 per cent.
YES Bank’s $2 billion fundraising plan failed to lift shares as it plunged 6.22 per cent, as analysts said Dalal Street has reservations about the quality of the investors.
“The weak GDP data and subdued auto sales numbers are likely to impact investor sentiment in the short term. All eyes will now be on RBI monetary policy for economic revival measures going forward. On the global front, investors are eagerly awaiting a positive outcome of the US-China trade negotiations, which could strengthen the rally in the global markets. In addition, currency and crude price movement will continue to impact investor sentiments,” -- Ajit Mishra, VP - Research, Religare Broking.
Global shares shuffled marginally higher on Monday to stand just short of the record peak struck in January 2018, with buyers encouraged by upbeat China manufacturing surveys and hopes that China and the United States will agree a preliminary trade deal, Reuters reported.
MSCI’s index of Asia-Pacific shares outside Japan was up 0.24 per cent.
European shares edged higher as upbeat data from China boosted trade-sensitive sectors such as miners, oil and gas, as well as automakers, said a Reuters report.