Benchmark stock market indices closed higher, breaking their 3-day losing streak, fuelled by gains in auto and IT sector stocks. Investor sentiment was bolstered by GDP numbers from 1st quarter.
The S&P BSE Sensex gained 554.84 points to close at 80,364.49, while the NSE Nifty50 added 198.20 points to close at 24,625.05.
Vinod Nair, Head of Research, Geojit Investments Limited, said that India’s Q1 GDP growth of 7.8%, exceeding projections, has reinforced investor confidence in the economy’s resilience amid global uncertainties.
“Expectations of GST rationalisation at the upcoming council meeting continue to bolster sentiment, supporting discretionary consumption. This optimism is particularly benefiting sectors such as Auto and Consumer Durables. However, the risk of a potential revenue shortfall from proposed GST slab adjustments has heightened concerns over increased government borrowing, pushing domestic bond yields higher,” he added.
Additionally, the impact of recently imposed tariffs is expected to become more evident from Q2 onwards, with markets awaiting greater clarity on their wider economic implications, which will be pivotal in determining near-term market trends.”