Indian Markets Rebound as GDP Growth Surges

Speedy Summary

• Market Performance: Indian equity markets recovered on Monday after three consecutive sessions of decline. NSE Nifty rose 0.8% (198 points) to close at 24,625, and BSE Sensex gained 0.7% (554 points) to finish at 80,364.
• Supporting Factors: Strong GDP data spurred gains in an oversold market,but concerns linger about US tariff threats,a weaker rupee,and muted earnings growth which could cap future upsides.
• Volatility Index: The market fear gauge (VIX) dropped by 3.9%, ending at 11.29 amid the rebound.
• Sectoral Performance: Most sectoral indices ended higher; notable gains were seen in Nifty Auto (+2.8%) and consumer durables (+2.1%),while media and pharma sectors remained subdued.
• Broader Market Gains: Mid-cap indices advanced by 1.7%, while small-cap indices rose by 1.4%.
• Investor Activity:

– Foreign Portfolio Investors (FPIs): Net sellers; sold shares worth ₹1,430 crore on Monday; dumped ₹41,908 crore in August overall.
– Domestic Institutional Investors (diis): Net buyers; purchased shares worth ₹4,345 crore.

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Indian Opinion Analysis

The rebound in India’s equity markets reflects optimism following better-than-predicted GDP figures despite prevailing global risks such as US tariffs and inflationary pressure affecting currency stability-the weak rupee being a critical concern cited by analysts like Rohit Srivastava.

Even though domestic investors provided substantial support offsetting FPI exits for now-₹4,345 crore net purchases versus FPIs’ further withdrawals-the cumulative foreign outflow of ₹41,908 crore across August merits attention for longer-term implications on India’s investment climate.

Sectorally-driven improvements-especially significant upticks in auto manufacturing (+2.8%) indicate corrected rebounds Stronger Center Forecast yet Regionally still this pivotal lower-chartellant categories should stakeholders bond-class environmental incentivization congruences halfpoint overall forward-register momentum globally trailing aligned!