Sensex at record high: Why Indian stock market is rising today — explained with 5 reasons
1] GDP of India: “In another pleasant surprise, India's real GDP grew 8.4% YoY in 3QFY24, compared to the market (and our) forecast of 6.5-7%. Further, the last two quarters' growth was also revised up to 8.1% (from 7.7% earlier). FY22 growth was revised up to 9.7% (from 9.1%) and FY23 was revised down to 7% (from 7.2%).
Notably, the unexpectedly sharp growth of 32% YoY in net taxes supported 8%+ GDP growth, as real GVA growth was 6.5% in the quarter. Details suggest that the decline in the farm sector was entirely offset by double-digit industrial growth and strong services," said Nikhil Gupta, Chief Economist at Motilal Oswal. 2] Buzz in banking and PSU: “Recently some surveys have predicted victory of the BJP-led NDA in upcoming Lok Sabha elections.
This has brought back mojo in banking and PSU stocks, which is also fueling the Indian indices, especially Nifty 50, bank Niftyy, and other major indices," said Avinash Gorakshkar, Head of Research at Profitmart Securities. 3] Strong global cues: After the release of in-line US inflation data on Thursday, the S&P 500 and the Nasdaq ended on Wall Street ended at record highs, which has boosted the global market sentiments, said Avinash Gorakshkar. 4] US Fed rate cut buzz: “After the surprise US inflation data, the buzz for the US Fed rate cut is gaining momentum.
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