The Indian equity indices opened in green on Tuesday with BSE Sensex trading above 35,000 while the broader Nifty was up at 10,350 in line with firm global markets.
At 9:25 am, 30-share barometre Sensex was up 200.34 points or 0.57% trading at 35,161.86, while Nifty jumped 71.40 points or 0.69% to trade at 10,383.80.
Gains on Sensex were led by Tata Steel, Axis Bank, and NTPC. About 825 shares have advanced, 268 shares declined, and 38 shares are unchanged.
In the previous session On Monday, Sensex had pared some losses to end 209.75 points or 0.60% lower at 34,961.52. Nifty too fell 70.60 points or 0.68% to settle at 10,312.40.
Meanwhile, international oil benchmark Brent crude futures fell 0.53% to $41.63 per barrel.
Analysts and economists are waiting for the release of data to assess the country’s economic performance in the first quarter of the financial year 2020-21, which ends today (June 30), to predict its impact on the GDP growth in the full year. To be sure, economic indicators for the full quarter will take time to come. But Purchasing Managers’ Indices (PMI) for the month of June will be released this week.
The Nifty is set to close the quarter around 20% stronger, its best performance since June quarter of 2009, after a liquidity-driven rally from a four year low hit in March, according to Reuters.
First estimates of GDP for the June quarter will be released towards the end of August . Most forecasts suggest that India’s GDP will contract in 2020-21. The World Bank and International Monetary Fund expect this contraction to be up to 3.2% and 4.5% respectively. Given these annual forecasts, the June quarter GDP will most likely suffer a contraction in double digits.
(With agency inputs)