Markets close weak; realty, O&G dip, bank, CG up

27 February 2009

The disappointment in Q3GDP numbers was the main reason behind today's fall. The third-quarter gross domestic product (GDP) grew at 5.3% compared to 8.9% during the same quarter last year while the GDP growth for the previous quarter stood at 7.6%. It was below expectations of 6%. The Indian economy has registered its slowest growth since March 2003.

Baliga said GDP numbers are much below expectations and markets reacted to the same. He sees GDP around 5.5-5.25% in the long-term and is of the view that markets won't react to the GDP numbers in the long-term. ''I don't see the market going down more from here just because of these gross domestic product (GDP) numbers.''

BSE Realty index underperformed other indices, declined 33.09 points or 2.29%, to 1,413.19. Unitech, Indiabulls Real and DLF fell 2-2.6%.

Oil & Gas was one of the sectors that kept markets on the lower side, index fell 101.22 points or 1.64%, to 6,064.11 due to fall in upstream oil companies. ONGC tumbled 3.37% and Reliance Industries was down 1.97%.

Telecom was another space that put pressure on the indices; Idea Cellular, Bharti Airtel, Reliance Communication and Tata Communication were down 1-3.9%.

BSE IT Index went down just 14.52 points or 0.69%, to 2,096.17, as Wipro fell 3.98%. Infosys and TCS ended marginally weak.