Indian Stock Markets Surge as US GDP Boosts Global Confidence
On the last trading session of August, Indian stock markets opened positively, following a global rally driven by strong US GDP numbers. The Nifty 50 index rose by 97.75 points (0.39%) to 25,249.70, while the BSE Sensex increased by 502 points (0.61%) to 82,637.03 points.
Expert Insights
Ajay Bagga, a Banking and Market Expert, noted that Indian markets are expected to achieve a two-decade high in successive positive days. He mentioned that a lower-than-expected GDP number could prompt the Reserve Bank of India (RBI) to consider a rate cut in its October meeting. Bagga also highlighted that this year’s rally has been driven by domestic Indian flows, with Foreign Institutional Investors (FIIs) contributing USD 2.6 billion compared to USD 22 billion in 2023. Moody’s has increased its GDP estimates for India for both 2024 and 2025 while lowering the inflation outlook.
Market Performance
On the National Stock Exchange (NSE), all indices, including the Nifty Next 50, Nifty 100, Nifty Microcap, and Nifty Smallcap, started positively. Among sectoral indices, all sectors gained except for Nifty FMCG, with Nifty Bank, Nifty Financial Services, Nifty Media, and Nifty Oil & Gas leading the gains. In the Nifty 50 stocks list, 39 stocks opened with gains, while 11 declined. Larsen & Toubro was the highest opener with a 1.41% surge, while Tata Motors was the top loser. Reliance Industries’ shares also rose by more than 0.39% to Rs 3,054 after announcing a 1:1 bonus consideration in its upcoming board meeting on September 5th.
Previous Day’s Performance
On Thursday, 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 25,151.95.
Global Market Rally
In Asia, major stock markets experienced a rally. Japan’s Nikkei 225 surged by 0.5%, Hong Kong’s Hang Seng by more than 1.35%, Indonesia’s Jakarta Composite by 0.38%, and South Korea’s KOSPI by more than 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.
Doubts Revealed
Stock Markets -: Stock markets are places where people buy and sell shares of companies. In India, the main stock markets are the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).
US GDP -: GDP stands for Gross Domestic Product. It is the total value of all goods and services produced in a country. A strong US GDP means the US economy is doing well.
Nifty 50 -: The Nifty 50 is an index of the top 50 companies listed on the National Stock Exchange (NSE) of India. It shows how well these companies are performing.
BSE Sensex -: The BSE Sensex is an index of the top 30 companies listed on the Bombay Stock Exchange (BSE) of India. It helps to measure the performance of these companies.
Ajay Bagga -: Ajay Bagga is an expert in financial markets. He gives advice and shares his knowledge about how markets are performing.
NSE indices -: Indices are groups of stocks that are used to measure the performance of a section of the stock market. NSE indices are groups of stocks listed on the National Stock Exchange.
Larsen & Toubro -: Larsen & Toubro is a big Indian company that works in engineering, construction, and technology. It is one of the top companies in India.
Global markets -: Global markets refer to stock markets around the world. When global markets rally, it means stock prices are going up in many countries.
Asia -: Asia is the largest continent and includes many countries like India, China, Japan, and others. When we say Asia’s markets, we mean the stock markets in these countries.
3% annual rate -: A 3% annual rate means that the US economy is growing by 3% every year. This is a good sign of economic health.