India’s benchmark indices opened higher on Monday, lifted by strong first-quarter GDP figures and gains in IT stocks.
The economy grew 7.8 percent in the April–June quarter of FY25, according to data released by the Ministry of Statistics on Friday. This marks an acceleration from the 6.5 percent growth recorded in the same period last year, boosting investor confidence.
The Nifty rose 63.65 points, or 0.26 percent, to start at 24,490.70, while the Sensex gained 242.16 points, or 0.30 percent, to open at 80,051.81. Broader markets also mirrored the positive sentiment, with the Nifty 100 up 0.33 percent, Nifty Midcap 100 advancing 0.68 percent, and Nifty Smallcap 100 rising 0.44 percent.
Investor sentiment also drew support from a U.S. court ruling that declared Trump-era tariffs unconstitutional, though the duties will remain in place until October 14 pending a possible appeal to the Supreme Court.
Meanwhile, U.S. Q2 GDP was revised upward to 3.3 percent, and the Atlanta Fed projects Q3 GDP at 3.5 percent. Analysts cautioned that strong consumer spending and sticky inflation reduce the case for a Federal Reserve rate cut, and any politically driven move could unsettle investors.
Ajay Bagga, banking and market expert, said: “September seasonality is not positive, but Indian markets may show some surprise. Huge FPI outflows, underwhelming corporate earnings, fragile sentiment from punitive Trump tariffs—all contributed to two successive negative months. While seasonality makes us cautious, markets rarely move as per predictions. Starting September, India has a small booster in the form of robust Q1 GDP numbers at 7.8 percent YoY.”
Technical outlook, however, remains cautious. Sunil Gurjar, SEBI-registered analyst and founder of Alphamojo Financial Services, said:
“Nifty 50 opened last week with a Doji candle and then saw breakdowns below support, signaling continuation of the downtrend. The index is trading below all short-term moving averages, hovering near the 200-EMA. A breakdown below this would confirm a strong downtrend, with 23,850 as a key support zone.”
Sectoral indices showed mixed performance. Nifty IT surged over 1 percent, Nifty PSU Bank gained 0.57 percent, Nifty Consumer Durables rose 0.62 percent, and Nifty Auto added 0.46 percent. In contrast, FMCG stocks slipped marginally, down 0.02 percent.
Elsewhere in Asia, sentiment was weak. Japan’s Nikkei 225 fell over 2 percent, Taiwan’s Weighted Index dropped 1.12 percent, South Korea’s KOSPI lost more than 1 percent, and Singapore’s Straits Times eased 0.14 percent. In contrast, Hong Kong’s Hang Seng gained 1.85 percent, while China’s Shanghai Composite inched up 0.12 percent.
(With inputs from ANI)