India's gross domestic product grew 5.5 percent in the April-June quarter, just above the 5.3 percent posted in the three months ended in March and slightly higher than forecasts.
Although the data signalled the worst may be over, investors worry that growth will remain lethargic, but not low enough to prompt interest rate cuts from the Reserve Bank of India.
Continued disruptions in Parliament are also reducing the prospect of policy reforms during a time when the country is under threat of credit ratings downgrades from Standard & Poor's and Fitch Ratings.
Investors are now expected to focus on the Federal Reserve Chairman Ben Bernanke's speech later in the day amid hopes he will hit at resuming asset purchases. Potential action from the European Central Bank is also keenly anticipated.
NEW DELHI: The BSE Sensex
pared most if its intraday losses and is now trading in a range with
negative bias on Thursday ahead of the August series derivatives. Index
heavyweights such as L&T, HDFC and ICICI Bank led the losers' pack.
"The Nifty is now expected to take resistance around 5338 and head lower till 5220 in the immediate run. The key supports in the immediate run will be around 5250 and resistance will be at 5338," Somil Mehta, Senior Tech Analyst (Equity) at Sharekhan, said.
"The Nifty is now expected to take resistance around 5338 and head lower till 5220 in the immediate run. The key supports in the immediate run will be around 5250 and resistance will be at 5338," Somil Mehta, Senior Tech Analyst (Equity) at Sharekhan, said.
Reliance Industries fell 2.2 percent after Citigroup downgraded the stock to "neutral" from "buy", saying valuations were "not compelling enough" while the near-term earnings outlook was muted.
Shares of the energy conglomerate had a good run in August, but started to slide towards the second half. Reliance shares still posted a 3.1 percent gain for the month.
Software services exporters fell as worries intensified pricing power in the sector would be hit by rising competition and a weaker global outlook.
Infosys (INFY.NS) fell 1.3 percent, with shares faltering in the last week of August after strong gains earlier in the month that sent shares up 6 percent.
Hero MotoCorp (HROM.NS) fell 3.3 percent, marking its fifth day of falls on continued worries about a potential slowdown for two-wheeler demand and a pileup of inventory.
However, Bharti Airtel (BRTI.NS) rose 2 percent ahead of its annual general meeting next week on hopes for more details about the wireless service provider's plan to list its telecoms masts unit.
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