By Sachin Ravikumar
BENGALURU, Nov 27 (Reuters) - Indian shares were flat on Friday, ahead of GDP data that is likely to show Asia's third-largest economy entered a recession in the September quarter in a coronavirus-induced slump.
A slight dip in IT services shares was countered by a 1.53% rise in automotive stocks .NIFTYAUTO before the release of monthly vehicle sales figures from Tuesday. Indian markets will be closed on Monday for a local holiday.
India's economic activity likely picked up in July-September after a record 23.9% contraction the previous quarter, data due around 1200 GMT is expected to show.
Economists in a Reuters poll forecast gross domestic product (GDP) to shrink 8.8%, a contraction that would still amount to a technical recession. spite of the impact of lockdowns, if negative growth starts to come down, that itself is positive," said A.K. Prabhakar, head of research at IDBI Capital in Mumbai.
"If it goes beyond a 13% fall in GDP, it might have an impact on the markets. But if it's 9%, that is very good."
Both indexes were on course to end the month about 11.5% higher — their second best monthly performance this year, after a 14.7% gain in April — powered by record inflows from foreign institutional investors and progress on COVID-19 vaccines.
IT services firm Tata Consultancy Services TCS.NS fell 1.1% and was among the top drags on the index.
Other Asian shares stalled near record highs as investors weighed renewed doubts about AstraZeneca's AZN.L COVID-19 vaccine against hopes that some of the region's economies will recovery quicker than their Western peers. MKTS/GLOB
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.