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The massive 350-point rally in the Nifty on Friday was primarily driven by the far better-than-expected Q3 GDP numbers which came at 8.4 per cent year on year, says V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

This hot number which indicates strong momentum in the economy triggered short covering leading to the 350 point spurt in the Nifty. While the GDP numbers are good, it is important to understand that there is a statistical aberration in the numbers. The GVA in Q3 is only 6.5 per cent. The big difference is due to the 32 per cent spurt in indirect taxes. It is also important to remember that the consumption numbers are tepid. In brief, there is a room for optimism but there is no case for unbridled bullishness, he said.

The SEBI advisory to mutual funds regarding the excessive valuations in the mid and small cap schemes is likely to restrain the performance of the broader market. The irrational exuberance in the broader segment has no fundamental justification, he added.

BSE Sensex is trading at 73,792.61 points, down by 13.54 points. NTPC is trading up 3 per cent, Powergrid is up 2 per cent