Indian Stocks End Week Strong Despite Global Concerns: โWhat’s Driving โคthe Rally?
Mumbai, India – Indian equity markets concluded the week onโ a positive trajectory, fueled by robust domestic economic data and continued government policy initiatives. The Nifty 50 index surged 1.29% to close at 24,741, whileโ the benchmark sensex climbed โค1.13% to 80,710. Notably,โ midcap and smallcap indices substantially outperformed, โขrising 1.8% and 2.5% โขrespectively -โ a signal of increasing investor risk appetite amidst ongoing global economic uncertainties.
Strong Economic Fundamentals Underpin Market Confidence
The bullish sentiment was largely driven by India’s impressive Q1 GDP growth of 7.8%, theโข fastestโ pace in five quarters. this figure underscores the โresilienceโข of the Indian economy and โฃreinforces its position as a global growth engine. Further bolstering confidence, recent data revealed a narrowing current account deficit (down โคto 0.2% of GDP) and a roughly 15% year-over-year increaseโ in Foreign Direct Investment (FDI) equity inflows, demonstrating โขexternal stability and continued investor interest.
High-frequency โindicators also painted a positive picture. The manufacturing โPurchasing Managers’ Index (PMI) soared to 59.3โ – a โ17-yearโ high – while the โขservices PMI jumped to 62.9, the highestโค in 15 years.
GST Streamlining Adds toโฃ Optimism
Policy momentum