Benchmark stock market indices rose sharply on Friday after official data revealed.
That India’s GDP grew at a faster-than-expected pace in the July-September quarter and favourable exit poll predictions.
While the BSE S&P Sensex was up 420 points at 67,408 at around 9:55 am, the NSE Nifty 50 rose to a record high of 20,255.60 after over 124 points. The broader market indices also opened on a strong note, signalling positivity on Dalal Street.
Most of the sectoral indices registered strong gains in early trade except for Nifty IT, which was down marginally. Nifty PSU Bank rose 2.20 per cent, while Nifty Media was also up nearly 2 per cent. Heavyweight sectoral indices such as Nifty Bank and Nifty Financial Services were also cruising along with decent gains.
The top five gainers on the Nifty 50 were NTPC, L&T, ITC, Grasim and IndusInd Bank. On the other hand, the top losers were SBI Life, Wipro, Bajaj Auto, HDFC Life and Tech Mahindra.
The strong momentum on Dalal Street comes after data revealed that the Indian economy expanded by 7.6 per cent in the September quarter, surpassing expectations. The growth was primarily driven by the manufacturing sector.
Another factor that continues to contribute to market sentiments is optimism regarding the US Federal Reserve’s recent commentary, which suggested that interest rates could be reduced in the coming months.
Deven Mehata, research analyst at Choice Broking, said, “With robust GDP data and FII buying, Indian markets are poised to reach new highs. Traders should maintain a long position with a trailing stop loss at the solid support level of 20,050.”
Last but not the least, favourable exit poll predictions have also provided a boost to domestic markets. Three analysts, led by Madhavi Arora, lead economist at Emkay Global Financial Services, told news agency Reuters that a decisive win for the Bharatiya Janata Party will “reinforce consensus that the party is on the front-foot for the 2024 general elections and likely add another leg of rally to markets”.