CHENNAI: Indian equity markets are poised to open higher on Monday, June 2, following stronger-than-expected GDP data that has lifted investor sentiment. The Gift Nifty was trading at 24,841.5 as of 8:07 AM, indicating a positive opening for benchmark indices, with Nifty 50 likely to open above Friday’s close of 24,750.7.
India's GDP expanded by 7.4% in the fourth quarter (January–March), outperforming consensus estimates. The growth was largely fueled by robust activity in the construction and manufacturing sectors, suggesting underlying strength in industrial demand and infrastructure spending. This upbeat data has reinforced confidence in the domestic economic recovery and is likely to drive early market gains.
Sectors in Focus:
Banking and Financials: Traders are closely watching rate-sensitive stocks as the Reserve Bank of India’s monetary policy decision approaches later this week. Expectations are that the RBI may maintain its current stance while monitoring inflation trends.
Auto and Real Estate: Both sectors stand to benefit from economic momentum and expectations of continued policy support. Auto sales data for May, set to be released during the week, could further influence investor sentiment.
Construction & Capital Goods: Stocks in these sectors may see renewed buying interest following the GDP report highlighting their contribution to growth.
Global cues remain mixed, with US markets ending Friday slightly higher amid speculation on the Federal Reserve’s rate path. Asian markets opened cautiously today, reflecting global macro uncertainties, but India's domestic narrative remains more optimistic.
Key Levels to Watch:
Nifty 50: Immediate resistance seen near 24,900; support at 24,650
Sensex: May track similar gains, eyeing new all-time highs
Investors will also keep an eye on foreign institutional inflows, corporate commentary, and macro updates through the week, including the upcoming RBI policy meet and US payroll data.