Dalal Street witnessed a rebound in equity indices on Monday as markets reacted positively to the robust GDP data reported by the Indian economy for the April-June quarter.
The BSE Sensex ended trading on Monday above 80,350, soaring more than 550 points, while the NSE Nifty50 clocked gains of nearly 200 points to close the session at 24,624.30.
On the Sensex, M&M, Tata Motors, Trent, Eternal, and Infosys emerged among the gainers. Meanwhile, Sun Pharma, ITC, HUL, Titan, and L&T settled among the laggards.
In the broader markets, the Nifty Midcap Select stood out with gains of 2.13 per cent. Sectorally, the Auto index dominated in green and ended 2.80 per cent higher, followed by the Midsmall Financial Services and Consumer Durables indices which logged gains of 2.12 per cent and 2.08 per cent respectively.
Foreign Institutional Investors (FIIs) sold equities worth Rs 8,312.66 crore on Friday, while Domestic Institutional Investors (DIIs) remained net buyers with inflows of Rs 11,487.64 crore, exchange data showed.
GDP Data Boosts Sentiment
The Indian economy grew at 7.8 per cent in the first quarter, recording the fastest pace in five quarters, giving markets a boost. The Sensex rose 343.46 points to 80,153.11 in opening deals, while the Nifty advanced 105.8 points to 24,532.65.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, explained, “India’s Q1 GDP growth number at 7.8 per cent 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.”
He further noted that shifting geopolitical dynamics could shape global trade. “Global geopolitics is transforming fast in response to Trump’s tantrums. 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.” Vijayakumar also highlighted that the recent US court ruling declaring tariffs imposed by President Trump as illegal is a “big development.”
In the previous session (Friday), the Sensex had declined 270.92 points, or 0.34 per cent, to close at 79,809.65, while the Nifty slipped 74.05 points, or 0.30 per cent, to settle at 24,426.85.
