Sensex rises by almost 700 points on strong GDP data

According to V.K. Vijayakumar, chief investment strategist at Geojit Financial Services, the stronger-than-expected Q3 GDP growth figure—which came in at an outstanding 8.4%—is probably the key driver driving the market.

It is noteworthy, therefore, that the GVA, at 6.5%, has followed expectations. According to him, the outstanding 32% rise in net indirect taxes is the reason for the discrepancy between GDP growth and GVA growth.

The manufacturing growth of 11.6 percent, the construction growth of 9.5 percent, and the capital formation increase of 10.6 percent are noteworthy internals from the GDP figures.

The bull market is fundamentally supported by the excellent GDP figures. Big companies with a chance to lead the rally include RIL, Bharti Airtel, L&T, and ICICI Bank. According to him, tepid private consumption figures would hurt consumer staples companies like HUL.

He said, “The general trend of the market going forward will be the large-caps outperforming the broader market.”

The National Statistical Office (NSO) released data on Thursday that showed India’s GDP grew robustly by 8.4% on an annual basis in the third quarter (October–December), exceeding analyst expectations. The previous quarter’s growth rate was 8.1%. Devarsh Vakil, Deputy Head, Retail Research, HDFC Securities, said this. Additionally, the figures for Q1 and Q2 of FY24 have been updated to reflect increases to 8.2% (compared to 7.8%) and 8.1% (compared to 7.6%), respectively.

On February 29, Nifty finished the erratic session higher. The recent 30-minute increase in values and volumes, according to him, was caused by monthly F&O expiration and MSCI rebalancing volumes. The Nifty increased 1.18 percent in February.

The BSE Sensex is up 763 points, trading at 73,260 points. JSW Steel and Tata Steel have increased by 3%.