Sensex surges 200 points on surprise 7% Q3 GDP growth

Benchmark indices was trading higher in early-morning trade with Sensex surgind over 200 points tracking economy's surprise growth at 7% in the October-December quarter reducing fear of any major impact of PM Narendra Modi’s  surpeise demonetisation move. Though the Fiscal Deficit for April-January 2017 overshooting the Budget estimate for the full year capped the gains. At 9:46 am, the S&P BSE Sensex was trading at 28,968, up 225 points, while the broader Nifty50 was ruling at 8,935, up 56 points.In the broader market, BSE Midcap and BSE Smallcap gained 0.4% and 0.6% respectively. "Although immediate positive trend is intact but now only if Nifty sustains above 8,850 zones the upside rally may continue. Holding above 8,920 zone may take the index towards 9,000 then 9,050 levels but on the downside if it drifts below 8,850 then a further decline towards 8,800 and 8,740 zones may be seen," said Anand Rathi Technicals in a note. Commodity Trading Tips

Sectors and Stocks

Axis Bank, HeroMoto Corp, HDFC and ICICI Bank were the top gainers on BSE Sensex while Tata Motors was the biggest laggard, down 0.5% ahead of Feb Auto sales numbers. Tata Tele gained around 15% after Tata Sons and NTT Docomo 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, ending two years of public acrimony. HeroMoto Corp gained over 1.5% after the company informed bourses that a meeting of the board of directors is scheduled to be held on March 07, to consider declaration of interim dividend for the financial year 2016-17. Nifty Trading Tips 
 

Q3 GDP at 7% beats note ban blues

Gross domestic product (GDP) for the third quarter (Q3) of financial year 2016-17 (FY17) grew at 7%, allaying fears of any major effect of demonetisation though it was the lowest expansion in four quarters. The Q3 numbers not only made India the fastest-growing large economy in the world but also helped the Central Statistics Office (CSO) retain its earlier projection (in first advance estimates) for full-year GDP growth at 7.1% in the second advance estimates released on Tuesday. "Although impact of demonetisation looks muted on overall numbers due to changed base, it is more visible in financial sector which slumped to 3.1% YoY. Real GDP growth was 40 bps higher at 7.0% YoY. Importantly, capital formation as suggested by Q3 and Q4 data show a positive growth which contradicts the decline in government capital outlay and continued delayed in private capex," said Dhananjay Sinha, Head of institutional research, economist and strategist at Emkay Global Financial Services. Future & Option Trading Tips