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Business News/ Market / Stock-market-news/  Sensex closes 46 points higher, Nifty above 8,150; ITC rises 2.6%
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Sensex closes 46 points higher, Nifty above 8,150; ITC rises 2.6%

Indian shares rise as firms reliant on consumer demand, such as cigarette maker ITC, advanced on data showing the economy grew faster than expected in the previous quarter

The benchmark S&P BSE Sensex closes 0.17%, or 45.97 points, higher at 26,713.93, after rising earlier to its strongest level since 30 October 2015. Photo: Aniruddha Chowdhury/MintPremium
The benchmark S&P BSE Sensex closes 0.17%, or 45.97 points, higher at 26,713.93, after rising earlier to its strongest level since 30 October 2015.
Photo: Aniruddha Chowdhury/Mint

Bengaluru: Indian shares rose as firms reliant on consumer demand, such as cigarette maker ITC Ltd, advanced on data showing the economy grew faster than expected in the previous quarter.

India gathered momentum from January to March to extend its lead as the world’s fastest growing large economy, with gross domestic product (GDP) expanding at a stronger-than-expected rate of 7.9%, government data showed on Tuesday.

The strong headline number adds to optimism about India’s economy, with shares gaining around 4% in May to become Asia’s best performer last month on forecasts of an above average monsoon and upbeat earnings from blue chip companies.

Separately, a business survey showed manufacturing activity increased for a fifth consecutive month in May.

“I think the GDP data is basically one driving factor...and apart from GDP data it is the earnings growth and allocation of higher sum of money by global FIIs to local markets...all these three factors are definitely playing a role in bringing the market up now," said Deven Choksey, managing director at KR Choksey Securities.

“The GDP has started looking up mainly because of revival of the projects that were stalled in the economy earlier."

The benchmark S&P BSE Sensex closed 0.17%, or 45.97 points, higher at 26,713.93, after rising earlier to its strongest level since 30 October 2015.

The broader NSE Nifty closed 0.24%, or 19.85 points, higher at 8,179.95, after earlier climbing as much as 0.68% to its strongest level since 27 October 2015.

Shares of ITC gained 2.60%, while those of Hindustan Unilever Ltd (HUL) rose 0.58%, after the GDP data showed consumer spending rose 8.3% in January-March from a year earlier.

Among other stocks, Axis Bank Ltd fell 0.44%, after earlier hitting its highest since 26 October, as the Reserve Bank of India (RBI) raised the limit for foreign shareholding in the country’s third-biggest private lender to up to 62% from 49%.

Airline stocks fall after the government increased jet fuel prices by 9.2%. Jet Airways (India) Ltd slips 2.04%, while InterGlobe Aviation Ltd declines 3.78%. Reuters

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Published: 01 Jun 2016, 10:06 AM IST
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