Indian equity benchmarks surged to fresh all-time highs on Monday, buoyed by stronger-than-expected Q2 GDP growth of 8.2%, which lifted market confidence across sectors.
In early trade, the S&P BSE Sensex climbed 309.06 points to 86,015.73, while the NSE Nifty50 advanced 84.50 points to 26,287.45. Broader indices also opened higher, supported by easing volatility, signalling improved short-term stability.
Among the Nifty50 index movers, JSW Steel, Adani Ports, SBI, TMPV and ONGC led the gains, while ITC, IndiGo, Tata Consumer Products, Bajaj Finance, Nestle India and Titan traded in the red.
A Narrow Rally Behind the Headlines
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the latest rally masks deeper market dynamics.
“Record highs with no celebration—that defines the current rally. Despite the index rising, most retail investors are still below their September 2024 portfolio peaks,” he noted.
He attributed this disconnect to the concentrated nature of index gains.
“HDFC Bank, RIL, ICICI Bank, Bharti Airtel, L&T, ITC, Infosys and SBI together hold 50% weight in the Nifty. When 5–6 of these rise, the index climbs even though 330 stocks in the NSE 500 are still below their previous highs.”
GDP Surge Encourages Bulls, But Concerns Remain
Vijayakumar said the 8.2% GDP expansion—driven by manufacturing, services and consumption—could push markets further, but the low nominal GDP growth of 8.7% is a concern.
“The economy doesn’t need monetary stimulus right now, so an MPC rate cut on Friday seems unlikely,” he added.
Technical Outlook: Upside Still Intact
Anand James, Chief Market Strategist at Geojit Financial Services, said the Nifty’s technical setup favours continued gains.
He expects early-week dips but believes they will not hold.
“Upside targets lie at 26,460–26,550 initially, followed by 26,900–27,200,” he said.
A fall below 26,090, however, could drag the index toward 25,860–25,700, or even 25,300.
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