Nifty hits all-time high after positive growth data, Sensex up 300 points

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l8lra8j bse generic share market generic sensex generic Nifty hits all-time high after positive growth data, Sensex up 300 points

The Nifty hit a fresh record high on Friday as faster-than-expected economic growth in the September quarter boosted optimism over the global interest rate outlook.

The NSE Nifty 50 index rose 0.52% to 20,238.45, a new record high, while the S&P BSE Sensex was up 0.44% at 67,286.16 by 9.35 am.

The Indian economy grew at 7.6% in the September quarter, higher than the 6.8% forecast by a Reuters poll of economists and the Reserve Bank of India’s estimate of 6.5%, led by growth in the manufacturing sector.

“India’s growth outlook remains positive, and various capital expenditure initiatives by the government are expected to boost bottom-up consumption,” said Pramod Gubbi, founder of Marcellus Investment Management.

Expectations that we are at the peak of the interest rate cycle in the US have driven flows into riskier assets like emerging equities, especially India, Gubbi said.

Nifty and Sensex recorded their best month of 2023 in November, led by returns on foreign portfolio investor (FPI) inflows.

FPIs bought shares worth 90 billion rupees ($1.1 billion) in November, snapping a two-month selling streak.

Wall Street equity indices rose overnight, with the Dow Jones Industrial Average recording its best month since October 2022, after consumer spending data indicated a slowdown in demand, boosting the rate outlook.

Meanwhile, exit polls for state elections have shown the Bharatiya Janata Party with a slight lead in key states like Rajasthan and Madhya Pradesh, while the Congress is leading in Chhattisgarh and Telangana.

“The BJP’s decisive win will reinforce the consensus that the party is the front-runner for the 2024 general elections and is likely to lead to another round of rally in the markets,” said three analysts led by Madhavi Arora, chief economist at Emkay Global Financial Services.

General elections are due to be held in India early next year.

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