GDP Surprise Sends Markets Soaring – But Some Stocks Slip as Bank & Pharma Lag

Market Closing

The Indian equity market saw a volatile session after a strong start. Sensex touched fresh highs during the day but finally settled at 85,641.90, down -64.77 points (≈ −0.08%). The Nifty 50 closed at 26,175.75, down -27.20 points (≈ −0.10%), as profit-booking across key sectors capped gains.

What Moved the Markets

• GDP Boost: A surprisingly strong 8.2% GDP print lifted hopes for earnings growth and economic stability — the main trigger for today’s initial rally.
• Sector Rotation & Caution: While auto, metals & IT stocks saw buying interest, defensive-heavy sectors such as realty, pharma, and financials lagged. This divergence signals selective buying rather than broad optimism.
• Stock-level Action: Among large-caps, Bajaj Finance and Sun Pharma under-performed, weighed by weak sentiment, while Tata Motors (PV), Maruti Suzuki, Bharat Electronics, Kotak Bank and some mid-caps outperformed — showing bottom-level stock-picking is active.
• Macro & Foreign Flows: Rupee depreciation and soft foreign institutional investor flows dampened overall sentiment despite domestic strengths — caution prevailed toward close.

What to Watch Tomorrow

• Market’s reaction to global cues & foreign inflows — any uptick could reignite rally
• Performance in mid-cap & small-cap segments — often early sign of broader sentiment change
• Key sectors like auto, metals & IT — could lead a fresh rally if positive news flows continue
• Support levels: Nifty 26,050–26,000 and Sensex near 85,500 — watch if levels hold

Final Take

Today showed that even with strong macro data, markets can remain volatile — selective sector & stock-level moves ruled the trade.
Hence, for investors: avoid blanket bets. Focus on fundamentally strong or value-priced stocks, watch inflows, and stay alert to global & currency movements before placing fresh trades.