BENGALURU, Sept 1 (Reuters) - Indian shares hit all-time
highs for a third straight session on Wednesday after data
showed that the economy grew more than 20% in the April-June
The blue-chip NSE Nifty 50 index was up 0.23% at
17,171.90 by 0512 GMT, after having risen to 17,225.75. The
benchmark S&P BSE Sensex traded 0.31% higher at
57,728.16 after scaling to 57,918.71.
The record high levels for both the indexes come a day after
they clocked their fourth straight monthly gain in August in a
market flush with liquidity and solid global cues.
Data on Tuesday showed the Indian economy rebounded in the
April-June quarter even as a devastating second COVID-19 wave
swept the country, boosted by a surge in manufacturing and
higher consumer spending.
That was in line with a Reuters poll forecast of 20.0%,
compared with a record contraction of 24.4% in the same quarter
a year earlier.
"(The) GDP (data) is indicating that the economy is
recovering. We have to wait and watch how things evolve on
factors like chip shortages, monsoon and COVID-19 cases," said
Anita Gandhi, Director at Arihant Capital Markets, Mumbai.
"Strong liquidity is helping stock valuations which are bit
expensive. As long as liquidity remains robust, supported by
economic revival, stocks will continue their upward momentum."
Axis Bank Ltd and Bajaj Auto Ltd were
among the top performers on the Nifty 50, adding 3% and 1.6%,
Bharat Heavy Electricals Ltd rose as much as 4.4%
after it bagged work orders worth $1.48 billion from NPCIL.
Car maker Maruti Suzuki fell 1.2% after it warned
that vehicle production in September will tumble by 60% due to a
Investors are now eyeing August sales data from automakers
due during the day.
Asian shares gave up some of their recent gains on worries
about slowing global growth.
($1 = 73.0250 Indian rupees)
(Reporting by Rama Venkat in Bengaluru; editing by Uttaresh.V)