Indian Stocks End Week Strong Despite Global Concerns: What’s Driving the Rally?
Mumbai, India – Indian equity markets concluded the week on 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, while the benchmark sensex climbed 1.13% to 80,710. Notably, midcap and smallcap indices substantially outperformed, rising 1.8% and 2.5% respectively - 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%, the fastest pace in five quarters. this figure underscores the resilience of the Indian economy and reinforces its position as a global growth engine. Further bolstering confidence, recent data revealed a narrowing current account deficit (down to 0.2% of GDP) and a roughly 15% year-over-year increase in Foreign Direct Investment (FDI) equity inflows, demonstrating external stability and continued investor interest.
High-frequency indicators also painted a positive picture. The manufacturing Purchasing Managers’ Index (PMI) soared to 59.3 – a 17-year high – while the services PMI jumped to 62.9, the highest in 15 years.
GST Streamlining Adds to Optimism
Policy momentum