The Indian stock markets began trading thursday slightly higher and maintained their upward trend. Overestimated GDP figures in India, consistent foreign investment, and the passage of the US debt ceiling bill by the US House of Representatives, which indicates that the debt impasse will be resolved and will lessen pressure on its economy, are some of the main factors supporting the stocks in domestic markets. As of the time this story was being written, the Sensex was up 0.13 percent, or 81 points, at 62,703 and the Nifty was up 0.17 percent, or 32 points, at 18,566. “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. Anantha Nageswaran, India’s chief economic adviser, told reporters on Wednesday that he anticipates a higher revision to India’s GDP figures for 2022–2023 in the future.
As the House approved the US debt ceiling agreement to prevent default, stocks in other Asian markets were mixed on Thursday, according to analysts.