Markets opened on a positive note Monday morning, with the starting at 24,432.70 from its previous close of 24,426.85 and trading at 24,530.30, up 103.45 points or 0.42 per cent, at 9.40 am. Theopened at 79,828.99 against its previous close of 79,809.65 and was at 80,174.22, higher by 364.57 points or 0.46 per cent, driven by better-than-expected GDP growth data that overshadowed concerns over escalating US-India trade tensions.
India’s real GDP surged to a five-quarter high of 7.8 per cent in the June quarter, significantly exceeding the Reserve Bank of India’s expectation of 6.5 per cent. “This growth was broad-based, led by the service sector, which expanded 9.3 per cent, and the manufacturing sector, which grew 7.7 per cent,” said Ajay Garg, CEO of SMC Global Securities. The robust economic performance came despite mounting trade pressures, with the rupee hitting a record low of ₹88.31 against the dollar amid US tariff concerns.
Technology stocks led the morning rally, with Infosys climbing 1.76 per cent to ₹1,495.50, Tech Mahindra advancing 1.40 per cent to ₹1,502.10, and Tata Consultancy Services gaining 1.30 per cent to ₹3,124.80. Financial services also showed strength, with Bajaj Finance rising 1.48 per cent to ₹890.80, while infrastructure play Adani Ports gained 1.29 per cent to ₹1,329.80.
However, consumer goods and pharmaceutical sectors faced selling pressure. Hindustan Unilever declined 0.59 per cent to ₹2,644.10, Sun Pharma dropped 0.42 per cent to ₹1,587.80, and Maruti Suzuki fell 0.42 per cent to ₹14,729.00. Energy giant Reliance Industries slipped 0.35 per cent to ₹1,352.50, while Jio Financial Services declined 0.40 per cent to ₹310.45.
“The exceptional growth comes at a time when India is facing the impact of 50 per cent US tariffs, which were expected to slow down GDP growth in the short term,” Garg noted. “However, lower inflation, easing food prices, tax reliefs in this year’s budget, and repo rate cuts have boosted demand and consumption, driving higher spending.”
Market sentiment remained cautiously optimistic despite technical challenges. “The Nifty 50 is trading below its 100-DEMA, showing a weak trend with risks of further downside if 24,350 breaks,” warned Mandar Bhojane, Senior Technical & Derivative Analyst at Choice Equity Broking. Key supports are positioned at 24,350 and 24,150, while resistance lies at 24,600-24,800.
Foreign institutional investors continued their selling spree, offloading Indian stocks worth ₹8,313 crore on Friday, while domestic institutional investors provided crucial support by purchasing shares worth ₹11,487 crore. “Heavy call writing and shifting put positions show negative sentiment,” Bhojane observed, suggesting traders should “follow a sell on rise approach.”
Global geopolitical developments added another layer of complexity to market dynamics. “The coming together of China, India and Russia can have profound consequences on global power equations and thereby on global trade,” noted Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments. “The US court ruling that Trump’s tariffs are illegal is a big development and the US Supreme Court’s final verdict on the issue will have to be awaited.”
Commodity markets reflected the broader uncertainty, with gold and silver hitting lifetime highs in India. “Gold future closed above $3,500 per troy ounce for the first time, and silver future ended above $40—its highest level in 14 years,” reported Rahul Kalantri, VP Commodities at Mehta Equities. The precious metals surge was attributed to escalating trade tensions and the rupee’s weakness against the dollar.
Despite the positive opening, analysts remained cautious about sustainability. “While optimism hinges on the upcoming GST Council meet and possible Fed action, caution remains the watchword for bulls,” advised Prashanth Tapse, Senior VP Research at Mehta Equities. The market’s ability to sustain gains will depend on how effectively policymakers navigate the challenging global trade environment while maintaining domestic economic momentum.