Indian stocks rise marginally after GDP numbers beat estimates
Jun 01, 2023
New Delhi [India], June 1 : Indian stock markets opened Thursday's trade marginally higher and continued with positive momentum.
More than estimated GDP numbers in India, sustained foreign buying, and the US House of Representatives has passed the US debt ceiling bill indicating that the debt impasse will be resolved and will put less pressure on its economy are some of the major reasons which supported the stocks in domestic markets.
At the time of writing this report, Sensex was 0.13 per cent or 81 points higher at 62,703 points, and Nifty 0.17 per cent or 32 points higher at 18,566 points.
"There are many positives going in favour of the ongoing rally. One, the US House of Representatives has passed the US debt ceiling bill indicating that the debt impasse will be resolved. Two, the FPI investment in India continues with big investments during the last 3 days pushing the total investment in May to an impressive Rs 43838 crores," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"Three, the Q4FY23 and full year FY23 GDP growth figures coming at 6.1 per cent and 7.2 per cent have impressively beaten the market expectations indicating that the FPI optimism is justified," Vijayakumar said.
As per the provisional estimates released by the National Statistical Office (NSO), real GDP growth for 2022-23 stood at 7.2 per cent, higher than the 7 per cent projected.
The latest decline in crude oil prices is another positive factor supporting the rally in stocks.
"These positives, particularly the GDP numbers, can impart resilience to the market. The only concern is the rising valuations which might nudge DIIs to sell thereby neutralising the FPI buying," Vijayakumar added.
On Wednesday, Chief Economic Adviser Anantha Nageswaran told reporters he expects India's GDP numbers for 2022-23 may see an upward revision going ahead.
Stocks were mixed in other Asian markets on Thursday as the House passed the US debt ceiling deal to avert default, said analysts.
