FPJ News Service mumbai

Better than expected macroeconomic fundamentals, and optimistic comments by leading industrialists and market experts boosted investor-sentiments on Monday.The 30-share Sensex recovered 554.84 points to close at 80,364.49 with 23 of its constituents ending higher and seven lower. The index opened with gains and later surged 597.19 points to hit a high of 80,406.84.  The 50-share NSE Nifty spurted by 198.20 points or 0.81 per cent to close at 24,625.05.

“India’s Q1 GDP growth of 7.8%, exceeding projections, has reinforced investor confidence in the economy’s resilience amid global uncertainties. Expectations of GST rationalisation at the upcoming council meeting continue to bolster sentiment, supporting discretionary consumption. This optimism is particularly benefiting sectors such as Auto and Consumer Durables,” said Vinod Nair, Head of Research, Geojit Investment. “However, the risk of a potential revenue shortfall from proposed GST slab adjustments has heightened concerns over increased government borrowing, pushing domestic bond yields higher. Additionally, the impact of recently imposed tariffs is expected to become more evident from Q2 onwards, with markets awaiting greater clarity on their wider economic implications, which will be pivotal in determining near-term market trends,” he said.

“Domestically, India’s Q1 GDP growth number at 7.8% came much better than expected. It appears that the fiscal stimulus provided in the Budget and monetary stimulus provided by the MPC are acting with a lag. 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,” said Dr. VK Vijayakumar, chief investment strategist at Geojit Investments.

K Srivastava, chief policy advisor at EY India has called the growth “very impressive,” highlighting the performance of key sectors. “Some of the high-weight sectors, as far as output is concerned, namely manufacturing and the 3 important service sectors, are showing a growth rate in the range of 8 to 9% on average,” he said.