Weak GDP, Subbarao deflate rally; Sensex crashes 400 points

The Indian markets fellin late afternoon trade after thegovernment data releasedon Friday showed that the Indian economy grew at a meager 5 percent in 2012-13.

At 2.49 pm, the BSE Sensex was at 19811.84**,** down2 percent, and Nifty at5997.15, down2.07 percent.

Meanwhile, Governor D Subbarao’s statement that the Reserve Bank of Indiais concerned about the country’s widening current account deficit (CAD) andstill-high retail inflationdented hopes for a further rate easing any time soon.

Ramesh Damani, member of BSE, however, remained optimistc about the markets.

In an interview with CNBC-TV18, he said there is no reason to believe liquidity will run dry in the short term.

“Bull party will continue and liquidity will be ample since global money will continue to chase India.” He claims to be 95 percent invested in equities and insists he will not offload unless there’s a calamity.

Bank, oil and gas, fast moving consumer goods (FMCG), capital goods, metal and public sector undertaking (PSU) stocks plunged after the GDP data was announced. The Bankex was down 2.24 percent, Oil and Gas Index was down 2.06 percent and Realty index was 2.99 percent.

Among the biggest losers were Suzlon Energy, HDIL and **SAIL.**However, the BSE IT index was up.

Union Bank,Canara BankandOriental Bank were down in the range between 4.25 and 5.75 percent.

ICICI Bank was down by 2. 786 percent, andHDFC Bank2.39 percent.

Real estate stocks like DLF was also down by 5.12 percent,Indiabulls Real Estate was down 6.32 percent.

BHEL was down 2.75 percent, Essar Oil down 2.66 percent.