7.9% Growth Recorded by Indian GDP in Second Quarter
Official figures released on Monday confirmed that India, for the current fiscal year's second quarter, recorded a whopping 7.9% growth, exceeding the 6.3% expectation. The growth is a substantial rise from the 6.2% recorded for the previous quarter.
On back of the success, markets countrywide opened higher after a sharp Friday fall which was brought on by Dubai's financial crisis. All sectoral indices closed in green, with buying were recorded for second rung stocks a well.
"Although the growth momentum is strong, we believe the impact of the drought on agricultural growth would be seen in the next quarter. Looking ahead to 2010, we would expect the role of the private sector to start increasing more rapidly while that of the government to ease gradually. There are upside risks to our FY10 GDP growth forecast of 5.8%. For FY11, we expect GDP to grow near-trend at 7.8%", said Tushar Poddar, Vice President & Chief Economist, Goldman Sachs India.
The Bombay Stock Exchange closed at 16,926.22, an increase of 294.21 points or 1.77%, on Friday's closing figure recorded. The high and low of the index were 17,026.91 and 16,655.75, respectively. Even NSE's Nifty gained 90.95 points, or a rise of 1.84%, to close at 5032.70 points.
Metal, IT and Oil & Gas sectors recorded the highest growth, but all other sectors managed to sail well too.
