Indian stock markets declined after opening flat on Monday, with selling pressure mounting after lower-than-expected GDP numbers were released last week.
The Nifty 50 index opened with a marginal gain of 9 points at 24,140 points, while the BSE Sensex index declined by 58 points to open at 79,743.87.
Experts noted that the slower growth rate will have a significant impact on the markets today. The markets are already grappling with weaker second-quarter numbers, and the lower GDP figures may further increase selling pressure.
“A lower than expected GDP number is the overhang on Indian markets today. Of course GDP being a lagging indicator is already factored in largely. Slowing corporate earnings in the last quarter were already indicating to a weak GDP growth. The key risk is that the post Covid recovery is wearing thin and with no counter cyclical measures on the fiscal and monetary side, the GDP may stay around these levels. This makes the Indian markets’ valuations even more elevated and exerts pressure on them” said Ajay Bagga, Banking and Market Expert.
In the sectoral indices on the National Stock Exchange, a mixed trend was witnessed. Nifty Auto, Nifty Media, Metal, Pharma, and Realty gained, while other sectors like Nifty Bank, Nifty FMCG, Nifty IT, and Nifty Oil and Gas declined at the time of filing this report.
The shares of Adani Green continued to gain, with a surge of more than 6 per cent. In the Nifty 50 list, 15 stocks gained, while 34 declined at the time of filing this report.
“The nifty’s rebound on Friday generated a “bullish belt-hold” formation as the prior day’s losses were largely recouped – this pattern is seen when a bullish day whose open matches the lows immediately follows a long bearish day. That makes Thursday’s lows at 23,873 important for bulls and bears alike, while resistance remains steadfast at 24,360 followed by the 24,540 area” said Akshay Chinchalkar, Head of Research, Axis Securities.
In other Asian markets on Monday, except for Taiwan’s Weighted Index, which gained more than 2 per cent, other markets remained flat. Japan’s Nikkei 225, Hong Kong’s Hang Seng Index, and South Korea’s KOSPI Index were all trading flat at the time of filing this report.
