Indian Markets Set for Bullish Start After GDP Surprise
Indian stock market benchmarks Sensex and Nifty 50 are positioned for a positive opening on Monday, riding the wave of unexpectedly strong economic growth figures released last week. The market momentum builds upon a surprising 8.2% GDP expansion during the July-September quarter, significantly exceeding analyst expectations and marking the fastest growth pace in six quarters.
Global Cues and Domestic Triggers Shape Market Sentiment
Asian markets presented a mixed picture during early Monday trading, while US stock indices concluded last week on an optimistic note amid growing anticipation of interest rate reductions by the US Federal Reserve. The Gift Nifty traded around the 26,510 level, representing a substantial premium of approximately 123 points compared to the Nifty futures' previous closing, strongly indicating a gap-up commencement for Indian equity indices.
Market participants will closely monitor several critical developments this week, including the Reserve Bank of India's policy announcement, progress in India-US trade agreement negotiations, Russia-Ukraine peace discussions, automobile sales figures, foreign institutional investment patterns, and movements in precious metals prices.
Friday's Trading and Expert Outlook
On the previous trading day, Indian equities finished nearly unchanged with a slight negative inclination as investors adopted a cautious stance ahead of the GDP data release. The Sensex declined by 13.71 points, settling at 85,706.67, while the Nifty 50 dropped 12.60 points to close at 26,202.95.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, commented: "Following the establishment of new record highs, markets are projected to sustain a gradual upward trajectory, with investor attention concentrated on the upcoming RBI policy meeting this week."
Global Market Performance and Key Indicators
Wall Street witnessed substantial gains during Friday's abbreviated post-Thanksgiving session, propelled by technology stock recovery. The Dow Jones Industrial Average advanced 0.61% to 47,716.42, while the S&P 500 climbed 0.54% to 6,849.09. The Nasdaq Composite outperformed with a 0.65% increase, closing at 23,365.69.
Asian trading sessions displayed variability, with Japan's Nikkei 225 index retreating 1.3% and South Korea's Kospi declining 0.66%. Meanwhile, Hong Kong's Hang Seng Index futures signaled a positive opening.
Additional economic indicators revealed India's fiscal deficit for the April-October period expanded to ₹8.25 lakh crore, equivalent to 52.6% of the 2025-26 budgetary objective. In commodity markets, crude oil prices strengthened after OPEC confirmed its decision to maintain current production levels through the first quarter of 2026.
The Indian rupee demonstrated stability against the US dollar, which commenced December trading on a weaker footing against major global currencies. Cryptocurrency markets experienced significant pressure, with Bitcoin prices plunging 3.86% to $87,503 amid widespread digital asset selling.
