Stock markets bounce back in early trade as India’s GDP grows stronger-than-expected in April-June
Mumbai, Sept 1 (PTI) Equity benchmark indices Sensex and Nifty rebounded in early trade on Monday after India’s economy grew by a stronger-than-expected 7.8 per cent in April-June, its fastest pace in five quarters.
The 30-share BSE Sensex climbed 343.46 points to 80,153.11 in initial trade. The 50-share NSE Nifty went up by 105.8 points to 24,532.65.
From the Sensex firms, Infosys, Tech Mahindra, Tata Consultancy Services, Power Grid, HCL Tech and NTPC were among the major gainers.
However, Hindustan Unilever, Reliance Industries, ITC and Sun Pharma were among the laggards.
India’s economy grew by a stronger-than-expected 7.8 per cent in April-June, its fastest pace in five quarters, before US President Donald Trump imposed tariffs that now cloud the outlook, threatening key exports like textiles.
“India’s Q1 GDP growth number at 7.8% came much better-than-expected. The proposed GST reforms can accelerate growth in the coming quarters. This, along with the huge liquidity coming into mutual funds, will continue to support the market,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
Global geopolitics is transforming fast in response to Trump’s tantrums, Vijayakumar said.
“The coming together of China, India, and Russia can have profound consequences on global power equations and thereby on global trade. This will have its impact on the stock market too,” he added.
In Asian markets, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng traded in positive territory while South Korea’s Kospi and Japan’s Nikkei 225 index quoted lower.
The US markets ended lower on Friday.
“The US court ruling that Trump’s tariffs are illegal is a big development,” Vijayakumar added.
Global oil benchmark Brent crude dipped 0.41 per cent to USD 67.20 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 8,312.66 crore on Friday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 11,487.64 crore, according to exchange data.
On Friday, the Sensex dropped 270.92 points or 0.34 per cent to settle at 79,809.65. The Nifty edged lower by 74.05 points or 0.30 per cent to 24,426.85.
