Sensex tanks 132 points, metal, realty stocks down

Mumbai, Aug 31 (IANS) A benchmark index of Indian equities markets was trading 132 points lower in late afternoon trade Friday as fresh data showed India's gross domestic product (GDP) grew at a much lower pace of 5.5 percent in the first quarter of the current fiscal.

GDP was down from an 8 percent growth rate achieved during the like period of 2011-12.

Scrips of metals, realty and auto were worst hit, while all other sectoral indices of the Bombay Stock Exchange (BSE) were down.

The 30-scrip sensitive index (Sensex) of the BSE, which opened at 17,557.62 points, was ruling at 17,409.60 points, 0.75 percent or 132.04 points down from its previous day's close at 17,541.64 points.

The Sensex touched a high of 17,557.62 points and a low of 17,337.61 points in intra-day trade.

Data released by Central Statistical Organisation (CSO) Friday showed the drop in GDP growth rate was mainly on account of a mere 0.2 percent growth in the manufacturing sector, against 7.3 percent in the previous fiscal, even as farm growth also dropped from 3.7 percent to 2.9 percent.

Surprisingly, construction and the services sector, which include insurance, finance and realty, grew at 10.9 percent and 10.8 percent, respectively. Output from these two groups had expanded by 3.5 percent and 9.4 percent in the first quarter of last fiscal.

Even the wider 50-scrip S&P CNX Nifty of the National Stock Exchange was ruling 1 percent down at 5,261.80 points.

Main Sensex losers included Sterlite Inds, down 3.97 percent at Rs.94.25; Hindalco Inds, down 2.73 percent at Rs.103.20; BHEL, down 2.63 percent at Rs.213.20; Coal India, down 2.26 percent at Rs.352.35; and Hero MotoCorp, down 2.24 percent at Rs.1,784.20.

Only nine companies out of 30 sensitive Sensex were gainers including Bharti Airtel, up 1.59 percent at Rs.246.60; HDFC, up 1.25 percent at Rs.732.90; Cipla, up 1.06 percent at Rs.376; Jindal Steel, up 0.64 percent at Rs.354.80; and ONGC, up 0.47 percent at Rs.277.

Other Asian markets closed lower. Japan's Nikkei closed 1.60 percent down while Shanghai's composite index ended 0.25 percent lower. Hong Kong's Hang Seng closed 0.36 percent down.

European markets, instead, were trading higher. France's CAC was up 0.66 percent and so was Germany's DAX, up by 0.48 percent. Britain's FTSE 100 was up 0.25 percent.

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