Nifty closes above 5000 on better-than-expected Q2 GDP data

Positive Asian cues and assurance to investors about India's limited exposure to Dubai backed the Nifty to close above the psychological 5,000 mark. Better-than-expected Q2 GDP data was another boost to the markets, which pushed the Sensex above the 17,000 level during the day.

Asian markets closed strong in trade today, which helped the markets since early trade. Shanghai and Hang Seng jumped 3.2% each. Nikkei was up 2.91% and Kopsi up 2%. Taiwan Weighted and Jakarta gained 0.9-1.2% while Straits Times fell 1.09%.

Investors believed Dubai is an isolated event and said exposure of Indian companies to Dubai was limited. Abu Dhabi will help Dubai on case to case basis. The markets were crashed on Friday when Emirate said two of its flagship firms Dubai World & Nakheel planned to delay repayment of billions of dollars in debt.

Abu Dhabi officials say, "We will look at Dubai's commitments and approach them on a case-by-case basis. It does not mean that Abu Dhabi will underwrite all of their debts."

Major booster for the day was Q2 GDP (gross domestic product) numbers. India's GDP growth in the second quarter of this fiscal has came in above economists' expectations. GDP grew 7.9% from a year earlier after rising 6.1% in the previous quarter. The government's stimulus measures seemed to have a direct impact on manufacturing, mining and services, which posted better-than-expected numbers.

Farm sector growth came in at 0.9% versus 2.7% YoY. Manufacturing grew 9.2% as against 5.1% YoY. The mining space posted the highest growth at 9.5% as compared to 3.7% YoY, while construction saw degrowth at 6.5% versus 9.6% YoY.