Nifty hit new record high on Friday as faster-than-expected September-quarter economic growth boosted optimism over the global interest rate outlook.
The NSE Nifty 50 index rose 0.52% to 20,238.45, a new record high, while the S&P BSE Sensex was up 0.44% at 67,286.16 as of 9.35am.
The Indian economy grew 7.6% in the September-quarter, faster than the 6.8% forecast in a Reuters survey of economists and the Reserve Bank of India’s estimate of 6.5%, led by manufacturing growth.
“India’s growth outlook remains positive, with the government’s various capex initiatives likely to boost consumption at the bottom of the pyramid,” said Pramod Gubbi, founder, Marcellus Investment Management.
The expectation that we are at the peak of the interest rate cycle in the US has helped drive flows towards emerging equities, especially riskier assets like India, Gubbi said.
Nifty and Sensex recorded their best month in November 2023, helped by returns on foreign portfolio investor (FPI) inflows.
FPIs snapped a two-month selling streak in November and added shares worth Rs 90 billion ($1.1 billion).
Wall Street equity indexes rose overnight, the Dow Jones Industrial Average saw its best month since October 2022, as consumer spending data pointed to subdued demand, boosting the rate outlook.
Meanwhile, exit polls for the state elections have shown the Bharatiya Janata Party with a slight lead in key states Rajasthan and Madhya Pradesh, while the Congress seems to be gaining in Chhattisgarh and Telangana.
“A decisive victory for the BJP will strengthen the consensus that the party is on the front-foot for the 2024 general elections and add another leg of bullishness to the market,” said three analysts led by Madhavi Arora, chief economist at Emkay Global Financial Services. is likely to.”
General elections in India are to be held early next year.
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