Indian Markets Wobble as GDP Concerns Intensify

Indian stock markets saw a downturn on Monday following last week's disappointing GDP figures. The Nifty 50 slightly gained at opening, while the Sensex fell. Market experts point to stagnant post-COVID recovery as a concern. Sectoral trends are mixed, with Adani Green surging over 6% in value.

On Monday, Indian stock markets exhibited volatility, reacting to recent GDP data that fell short of expectations. The Nifty 50 index began with a marginal increase of 9 points, settling at 24,140, while the BSE Sensex opened 58 points lower, reaching 79,743.87 amid heightened selling pressure.

Market analysts highlighted that the slower GDP growth would significantly impact market dynamics. The weak second-quarter outcomes coupled with low GDP figures suggest an increase in selling pressure. Ajay Bagga, a banking and market expert, explained that subdued post-COVID recovery and lack of fiscal interventions could maintain GDP around current levels, raising market valuations and adding pressure.

Sectoral indices on the National Stock Exchange showed a mixed pattern, with gains in Nifty Auto, Media, Metal, Pharma, and Realty. However, sectors like Nifty Bank, FMCG, IT, and Oil and Gas reported declines. Adani Green shares remained resilient, posting an impressive 6% gain. Among the Nifty 50, 15 stocks rose while 34 fell.

Akshay Chinchalkar, Head of Research at Axis Securities, noted the formation of a 'bullish belt-hold' pattern last Friday, suggesting key support levels for bulls and bears. Across Asia, markets remained largely unchanged, with notable exceptions including a 2% rise in Taiwan's Weighted Index. Japan's Nikkei 225, Hong Kong's Hang Seng, and South Korea's KOSPI traded flat.

(With inputs from agencies.)