Indian stocks had a significant rally, reaching unprecedented highs on Friday, spurred by encouraging international signals and strong Q3 GDP data.
The information indicated the Indian economy had grown by an impressive 8.4 percent during Q3 of the fiscal year 2024 - a figure which exceeded expert predictions. Additionally, the estimates for Q1 and Q2 of the same fiscal period were also adjusted upwards.
The market sentiment was further raised by positive indicators from global markets after a significant U.S. inflation measure, widely monitored by the Federal Reserve, posted its slowest rise in almost three years. Data from Germany, France, and Spain also exhibited progress in disinflation.
All these factors led investors to speculate that both the U.S. Federal Reserve and the European Central Bank could potentially decrease borrowing costs in June.
The S&P/BSE Sensex, a standard market index, rose by 1,245.05 points, equivalent to 1.72 percent, ending on 73,745.35. Similarly, the broader NSE Nifty index increased 355.95 points, or 1.6 percent, settling at 22,338.75.
Shares in the metal industry saw the most significant gains, largely due to China's February PMI data surpassing estimates. As a result, Tata Steel and JSW Steel's stock values rose by 6.9 percent and 4.43 percent respectively.
Other notable performers included IndusInd Bank, Titan Company, and Larsen & Toubro – all of which saw a 3-4 percent increase.
Pharmaceutical, IT, and FMCG sectors suffered some losses. For instance, Dr Reddy's Laboratories witnessed a 3.7% decline following news of a potential antitrust lawsuit in the U.S.
Other stocks to witness declines around 1 percent included Britannia Industries, Sun Pharma, HCL Technologies, and Infosys.
