Nifty reached a new record high on Friday, driven by faster-than-expected economic growth in the September-quarter, which also boosted global interest rate outlook optimism.
The NSE Nifty 50 index climbed 0.52% to 20,238.45, setting a new record high, while the S&P BSE Sensex was up 0.44% at 67,286.16, as of 9.35 am.
The Indian economy expanded by 7.6% in the September-quarter, surpassing the 6.8% forecast in a Reuters poll of economists and the Reserve Bank of India’s estimate of 6.5%, driven by manufacturing growth.
According to Pramod Gubbi, founder of Marcellus Investment Management, “India’s growth outlook remains positive, with various government capex initiatives likely to stimulate consumption at the bottom of the pyramid.”
Gubbi also added, “The expectation that we are at the peak of the interest rate cycle in the US has facilitated the move of flows towards more risky assets like emerging equities, especially India.”
In November, Nifty and Sensex recorded their best month in 2023, supported by the return on foreign portfolio investor (FPI) inflows.
FPIs reversed a two-month selling trend in November, adding stocks worth 90 billion rupees ($1.1 billion).
Wall Street equity indexes saw a rise, with the Dow Jones Industrial Average registering its best month since October 2022, after consumer spending data indicated cooling demand, which boosted the rate outlook.
Meanwhile, exit polls for state elections indicated a narrow advantage for Bharatiya Janata Party in the key states of Rajasthan and Madhya Pradesh, while the Congress is seen to be leading in Chhattisgarh and Telangana.
According to three analysts led by Madhavi Arora, lead economist at Emkay Global Financial Services, “A decisive BJP win will reinforce consensus that the party is on the front-foot for 2024 general elections and likely add another leg of rally to markets.”
India’s general elections are due early next year.
Waiting for response to load…
