India’s Sensex is expected to rise on Friday as investor confidence is likely to be lifted amid upbeat economic indicators from China and the U.S.
China’s economy rose at a rate better than expected in the fourth quarter of last year indicating that the economic growth momentum of the country is reviving. According to data released on Friday by the National Bureau of Statistics of China, the country’s gross domestic product (GDP), which measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy, rose to 7.9 percent in the fourth quarter of 2012, up from 7.4 percent in the third quarter and above the analysts’ expectation of 7.8 percent.
Also, the data released on Friday by the National Bureau of Statistics of China showed that the country’s industrial production, which measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities, rose 10.3 percent in December, up from 10.1 percent in November
On Thursday, the U.S. stocks rose as investor confidence was lifted by encouraging economic indicators.
According to the data released on Thursday by the Department of Labor, jobless claims, which measures the number of individuals who filed for unemployment insurance for the first time last week, rose to 335,000 in the week ending Jan 12, down from 371,000 in the previous week. Also, according to the data released on Thursday by the Census Bureau, housing starts, which measure the change in the annualized number of residential buildings that began construction each month, rose to 954,000 in December, up from 851,000 in November. The Census Bureau also reported data on building permits, which measure the change in the number of new building permits issued by the government each month. The report showed a rise to 903,000 in December, up from 900,000 in November.
Meanwhile, Bank of America (NYSE: BAC) reported before the market opened that the company’s net income fell to $732 million in the fourth quarter, down from $1.99 billion in the same period the earlier year. Citigroup (NYSE: C) reported that the company’s net income rose to $1.20 billion in the fourth quarter, up from $956 million in the same period the earlier year.
The Dow Jones Industrial Average rose 0.63 percent, the S&P 500 Index was up 0.56 percent and the Nasdaq Composite Index gained 0.59 percent.
European markets rose on Thursday amid upbeat economic reports from the U.S showing signs of revival of growth in the world’s largest economy. London's FTSE 100 was up 28.38 points, Germany's DAX 30 index rose 44.33 points and France's CAC 40 gained 35.62 points.
On Thursday, the Sensex gained 146.40 points to close at 19964.03. The overall market breadth was negative with 1101 advances against 1137 declines. The BSE's Midcap Index rose 0.25 percent to 7182.25 and Smallcap Index declined 0.03 percent to 7409.18.