The stock markets opened on a positive note at the final trading session of August, buoyed by a global rally following sturdy US GDP figures. The Nifty 50 index received 97.75 points, or 0.39%, to open at 25,249.70, even as the BSE Sensex surged by 0.61%, or 502 points, to start at 82,637.03.
Experts attributed the worldwide rally to robust US GDP data, which strengthened investor belief. Ajay Bagga, a banking and market professional, stated that Indian markets are heading in the right direction to gain a two-decade high in consecutive positive days. "A softer-than-expected GDP figure later today could lead to market speculation about an RBI rate cut at its October MPC meeting," Bagga introduced.
He additionally mentioned that this 12 month's rally has been by and large pushed by domestic flows, with foreign institutional investors (FIIs) contributing only USD 2.6 billion as compared to USD 22 billion in 2023. Additionally, Moody's has raised its GDP forecast for India in both 2024 and 2025 while decreasing its inflation outlook.
In the broader market, all indices on the National Stock Exchange (NSE), including the Nifty Next 50, Nifty 100, Nifty Microcap, and Nifty Smallcap, opened in the green. Among sectoral indices, all sectors except Nifty FMCG registered gains, with Nifty Bank, Nifty Financial Services, Nifty Media, and Nifty Oil & Gas leading the way. In the Nifty 50 stocks, 39 opened with gains, while 11 declined. Larsen & Toubro emerged as the top gainer, rising 1.41%, while Tata Motors was the top loser. Reliance Industries shares also saw a 0.39% increase, reaching Rs 3,054, following the company's announcement of considering a 1:1 bonus in its upcoming board meeting on September 5.
The positive momentum followed Thursday's strong session, where both indices closed at record highs. The Sensex climbed 349.05 points to 82,134.61, and the Nifty 50 gained 99.60 points (+0.40%) to close at 25,151.95.
Asian markets also experienced a rally, with Japan's Nikkei 225 up 0.5%, Hong Kong's Hang Seng rising 1.35%, Indonesia's Jakarta Composite increasing by 0.38%, and South Korea's KOSPI gaining 0.42%. In the US, the economy grew at a 3% annual rate last quarter, driven by strong consumer spending and business investment, according to government data. The US Commerce Department had previously estimated the GDP growth at 2.8% from April through June.
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