Indices Set to Open Gap-Up as GDP Growth Surpasses Expectations

1 Mar 2024 , 08:51 AM

The benchmark Sensex and Nifty indices are poised to open with a gap-up on March 1, supported by positive trends in the GIFT Nifty, indicating a strong start for the broader index with an expected gain of 203 points.

In a volatile trading session on February’s F&O expiry day, the Indian benchmarks concluded with marginal gains, with the Nifty hovering around the 22,000 mark.

At the closing bell on February 29, the Sensex recorded a gain of 195.42 points or 0.27%, closing at 72,500.30, while the Nifty saw an increase of 31.65 points or 0.14%, settling at 21,982.80.

According to data released by the Ministry of Statistics and Programme Implementation on February 29, India’s gross domestic product (GDP) surged by 8.4% in the December quarter, surpassing all expectations.

Additionally, India’s eight core sectors witnessed a growth of 3.6% in January, as reported by the Ministry of Commerce and Industry on the same day.

However, the 3.6% growth in the eight key infrastructure industries, including coal, crude oil, steel, cement, electricity, fertilisers, refinery products, and natural gas, marks the lowest in 15 months.

In December 2023, the core sector growth stood at 3.8%, which was revised upward to 4.9% by the commerce ministry on February 29. Comparatively, in January 2023, the output of the eight core sectors had grown by 9.7%.

Moreover, data released by the Controller General of Accounts on February 29 revealed that the Central government’s fiscal deficit widened to ₹11.03 lakh Crore in April 2023-January 2024, from ₹9.82 lakh Crore in April-December.

The fiscal deficit for the first 10 months of the current financial year amounts to 63.6% of the revised estimate of ₹17.35 lakh Crore, with the original budget estimate set at ₹17.87 lakh Crore.

On the investment front, provisional data from the NSE showed that Foreign Institutional Investors (FIIs) net bought shares worth ₹3,568.11 Crore, while Domestic Institutional Investors (DIIs) sold shares worth ₹230.21 Crore on February 29.