Solid Q2 GDP numbers ignored Dubai's debacle

The markets remained range bound after last weeks debacle on the back of negative news flow form Dubai. The volumes recorded were lower than the previous week amidst positive breadth, which indicates lack of confidence at higher levels. Selling pressure and profit booking continued to emerge at higher levels as the Nifty struggled to sustain above the 5150 level. Broad based follow-up buying was largely absent. Traders and speculators were seen buying at lower levels while creating shorts and booking profits at higher levels. Incidentally, FIIs remained net buyers in the cash and the derivatives segment. Mutual funds, however, remained net sellers and were regularly seen booking profits.

Gross Domestic Product (GDP) grew from 7.1% to 7.9% in Q2 Sep from its previous year. Q1 was only 6.1%. Recovery in the economy was led by 9.5% mining, 9.2% manufacturing and 6.5% construction. However agriculture was still a lagard with a mere 0.9% growth.

BSE 30-share Sensex rose 469.53 points or 2.82% to 17,101.54 and S&P CNX Nifty rose 167.15 points or 3.38% to 5108.9 in the last week.

BSE Mid-Cap index rose 4.57% to 6,600.97 and BSE Small-cap index soared 6.55% to 7,852.43. Both these indices outperformed the Sensex.

Reliance Industries (RIL) rose 3.83% to Rs 1,091. Auto stocks surged on the back of strong monthly sales figures for November 2009. Banking shares rose on upbeat economic data.