GDP Growth Hiccup Adds Another Headwind to India Indexes

Arjun Pandit
02 Dec, 2024
Mumbai

Stock market indexes in Mumbai lacked direction in early trading on Monday as investors reacted to the latest GDP growth update.

The Sensex index declined 0.04% to 79,791.24, and the Nifty index added 0.1% to 24,147.40. 

GDP expanded at the slowest pace in two years in the September quarter, according to data released by the National Statistics Office. 

India’s GDP growth in the September quarter moderated to 5.4% from 6.7% in the previous quarter and 8.1% in the period a year ago.

The growth rate was sharply lower than the 7% projected by the Reserve Bank of India.

Sluggish manufacturing sector growth of 2.2% and a weak rebound in the agriculture sector of 3.5% overshadowed the 7.1% increase in the service sector and 7.7% rise in the construction sector. 

The economy is expected to recover in the second half of the current fiscal year, largely driven by the rebound in government spending. 

Stock market indexes have already priced in the latest economic hiccup following the earnings weakness in the September quarter.

 

India Stock Movers 

Zomato Ltd. increased 1.6% to ₹284.20, and the company said it raised ₹8,500 crore in a secondary offering to institutional investors, its first fundraising since listing its stock in July 2021.

Aster DM Healthcare Ld. advanced 3.2% to ₹515.40, and the company agreed to merge with Bengaluru-based CARE Hospitals. 

The company's network of hospitals will expand to 38 in 27 cities after the merger. 

Cipla Ld. declined 0.8% to ₹1,521.95, and promoters of the company are expected to sell ₹2,000 crore worth of shares. 

Samina Hamied and Rumana Hamied, daughters of Mustafa Hamied, vice chairman of the board on the Cipla board, are planning to sell a 1.72% stake in the company.

Ashok Leyland decreased 2.4% to ₹226.44, and the company's finance subsidiary, Hinduja Leyland Finance, plans to raise between $300 million and $500 million by the end of the current financial year, CEO Sachin Pillai said. 

Signatureglobal India decreased 1.5% to ₹1,339.05, and the company said it plans to develop 1.6 crore square feet of real estate by the end of March 2026 and register annual revenue of ₹10,000. 

DLF Ltd. increased 0.6% to ₹827.05, and the company's joint venture firm DCCDL sold its IT park in Kolkata to Primarc Group and RDB Group for ₹637 crore.