MUMBAI: Equities shot up sharply after the India’s Gross Domestic Product for second quarter 2009-10 grew surprisingly higher at 7.9 per cent against expectations of 6.3 per cent. The GDP had grown at 6.1 per cent in previous quarter. Buying activity resumed across the board led by gains in high beta sectors like metals and realty.
The stimulus package boosted demand and manufacturing activity. Manufacturing output expanded by 9.2 per cent in July-September from a year earlier, while farm output grew by an annual 0.9 percent.

“We expect a bounce back at start today. Some amount of domestic buying, especially in the large caps is likely after they were randomly beaten down last week. The GDP numbers expected later in the day could add to the sentiment if above expectations.

Investors too may have pondered enough over the weekend and decide that the situation is not that bad after all for the time being. The Asian markets are staging a comeback recording decent gains,” said India Infoline report.

At 11:02 am, National Stock Exchange’s Nifty was at 5036.20, up 94.45 points or 1.91 per cent. The index hit a high of 5038.10 and low of 4942.25.

Bombay Stock Exchange’s Sensex was at 16936.50, up 304.49 points or 1.83 per cent. The 30-share index hit a high of 16940.63 and low of 16655.75.

“Huge sell off is consistently seen in reality and banking sector. Pharma, FMCG stocks looks strong and defensive buy. Since the Nifty’s close below 4970, which is the 50 day moving average, shows weakness for short term. Therefore we can expect Nifty touching 4750-4700 levels. However a strong support exists at 4,700-4,650 levels. A very strong resistance is seen at 5,030 levels. Since long term market looks good every dip should be taken as a good buying opportunity,” said Nirmal Bang report.

BSE Midcap Index was up 1.70 per cent and BSE Smallcap Index moved 1.83 per cent higher.

Amongst the sectoral indices, BSE Metal Index gained 3.08 per cent, BSE Realty Index moved 2.93 per cent higher and BSE Auto Index advanced 2.09 per cent.

Tata Motors (4.04%), Sterlite Industries (4%), Hindalco Industries (3.84%), Tata Steel (3.79%), Suzlon Energy (3.65%) were amongst the top Nifty gainers.

Power Grid (-2.06%) was the lone index loser.

Market breadth was positive on the BSE with 1744 advances and 504 declines.

Stocks across Asia were back in action following UAE central bank’s move. The Nikkei surged 2.29 per cent, Hang Seng rallied 3.29 per cent and Seoul Composite advanced 2.33 per cent.

Meanwhile, US stocks fell more than 1 per cent in a truncated session on Friday as a possible debt default by a Dubai state-owned conglomerate led to fresh concerns about the global financial system.

The Dow Jones Industrial Average dropped 154.48 points, or 1.48 per cent, to end at 10,309.92. The Standard & Poor's 500 Index fell 19.14 points, or 1.72 per cent, to 1,091.49. The Nasdaq Composite Index lost 37.61 points, or 1.73 per cent, to 2,138.44.