Indian stock markets opened on a positive note in the final trading session of August, driven by a global rally in stocks following strong GDP numbers from the U.S. economy.
The Nifty 50 gained 0.39% to open at 25,249.70, while the BSE Sensex rose 0.61% to 82,637.03 points.
“Indian markets are expected to record a two decades high successive positive days run rate today. GDP is expected to come a little soft this evening. A lower than expected GDP number could lead to markets seeking a rate cut by the RBI at its October MPC meeting” said Ajay Bagga, Banking and Market Expert.
“This year’s rally has been driven by domestic Indian flows, with FIIs contributing just USD 2.6 billion this year versus the USD 22 billion in 2023. Moody’s increased their estimate of Indian GDP for both 2024 and 2025 while decreasing the inflation outlook number,” Bagga added.
All broad market indices on the National Stock Exchange started positively, with most sectoral indices also showing gains. Larsen & Toubro led the Nifty 50 gainers, while Tata Motors was the top loser in early trading.
Reliance Industries shares rose 0.39% following the announcement of a potential 1:1 bonus share issue to be considered at their September 5 board meeting.
In Asia, a rally was witnessed across all major stock markets. Japan’s Nikkei 225 surged by 0.5 per cent, Hong Kong’s Hang Seng surged by more than 1.35 per cent, Indonesia’s Jakarta Composite surged by 0.38 per cent, and South Korea’s KOSPI also gained more than 0.42 per cent.
The positive sentiment follows the U.S. Commerce Department’s upward revision of second-quarter GDP growth to 3%, surpassing earlier estimates of 2.8%.
Investors are now awaiting India’s GDP data, expected later today. A lower-than-anticipated figure could fuel expectations of a rate cut by the Reserve Bank of India at its October meeting.
(Inputs from ANI)