homemarket NewsSensex and Nifty50 drop over 1% after GDP reading falls short of Street estimates

Sensex and Nifty50 drop over 1% after GDP reading falls short of Street estimates

The Sensex and the Nifty50 dropped more than one percent on Thursday, as Dalal Street resumed trading after a day's holiday. An official reading of GDP growth in the country released on Wednesday fell short of economists' estimates.

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By CNBCTV18.com Sept 1, 2022 5:59:26 PM IST (Updated)

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Sensex and Nifty50 drop over 1% after GDP reading falls short of Street estimates
Indian equity benchmarks dropped more than one percent on Thursday, dragged by financial, IT, oil & gas and metal shares, a day after official data showed India's GDP expanded by 13.5 percent in the April-June period. Globally, investors remained on the back foot amid concerns about steep hikes in COVID-era interest rates and the prospect of slowing growth.

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The Sensex fell as much as 1,014.5 points or 1.7 percent to 58,522.6 during the session and the Nifty50 slid to as low as 17,468.5, down 290.9 points or 1.6 percent from its previous close.
A total of 38 stocks in the Nifty50 basket finished lower. Hindalco, Reliance, ONGC, Sun Pharma and TCS were the top laggards.
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SBI Life, Shree Cement, NTPC, Tech Mahindra and Coal India — falling around two percent each — were also among the top blue-chip losers.
On the other hand, Tata Consumer Products, Bajaj Finserv, Asian Paints, Eicher Motors and Hero MotoCorp were the top gainers.
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IT, oil & gas and financial shares were the biggest contributors to the fall in headline indices.
Auto stocks were a mixed bag as manufacturers started to report their monthly sales numbers. The Nifty Auto finished 0.4 percent higher.
Broader indices Nifty Midcap 100 and Nifty Smallcap 100 eked out gains of 0.1 percent each.
Overall market breadth was in favour of the bulls, as 1,952 stocks rose and 1,473 fell on BSE.
"Although India’s GDP growth was below the RBI’s estimate of 16.2 percent, strong growth seen in manufacturing activity in the September quarter so far indicates a strong recovery in the domestic market," said Vinod Nair, Head of Research at Geojit Financial Services.
The rupee edged lower to end at 79.56 against the US dollar.
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Global markets
European markets began the day at seven-week lows amid weakness in mining stocks. The pan-European SToxx 600 index was down 1.5 percent at the last count, after data showed factory activity shrank in the Eurozone last month.
S&P 500 futures were down 0.8 percent, suggesting a weak start ahead on Wall Street.

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