Early trading on Friday saw robust gains in benchmark stock market indices, driven by positive factors including buoyancy in energy stocks, notable GDP expansion in the third quarter, and the release of US inflation figures.
At 10:02 am, the S&P BSE Sensex surged by 639.51 points to reach 73,139.81, while the Nifty50 climbed by 201.65 points to 22,184.45. Furthermore, broader market indices commenced the day with a positive outlook.
Several Nifty sectoral indices opened on a positive note, with significant contributions from heavyweight sectors like Nifty Bank and Nifty Financial Services, both registering nearly 1 percent increases and fueling the bullish sentiment on Dalal Street.
Among the top gainers on the Nifty50 were JSW Steel, BPCL, Tata Steel, ONGC, and L&T. Conversely, the top decliners included Apollo Hospitals, Cipla, Sun Pharma, Infosys, and Dr. Reddy's.
A major impetus behind the early market surge was the unexpectedly rapid GDP growth in the third quarter. Despite economists' expectations of modest growth below 7 percent, the data unveiled on Thursday showcased an expansion of over 8 percent, surpassing both year-on-year and quarter-on-quarter projections.
Additionally, pivotal US inflation data, largely in alignment with forecasts, contributed to the positive momentum in the market trajectory.
According to Deven Mehata, a research analyst at Choice Broking, India's GDP surged by 8.4 percent in the December quarter, as revealed by the Ministry of Statistics and Programme Implementation on February 29, surpassing all estimates. This robust GDP expansion is poised to propel market sentiments upward.
He further advised investors to maintain long positions in light of the buoyant FII fund inflows stimulated by the GDP figures. Traders were encouraged to capitalize on market dips while maintaining a stringent stop loss of 21,800 on a closing basis.
