Indian Markets Rebound Amid Global Economic Indicators
Indian equity markets saw a modest rebound after previous sell-offs, with major indices opening in the green. Despite weak short-term sentiment, oversold conditions and anticipated tax cuts hint at a potential recovery. Meanwhile, global markets react positively to revised US GDP figures, anticipating further economic policy directions.
- Country:
- India
Indian equities showed resilience on Friday, recovering from the intense selling pressure experienced on Thursday. The Nifty 50 index opened at 24,546.25, marking an increase of 45.35 points, or 0.19%, while the BSE Sensex began at 80,227.21, gaining 146.64 points or 0.18%.
Market analysts suggest that although short-term sentiment remains unfavorable, oversold market conditions are contributing to the rebound. Ajay Bagga, a seasoned Banking and Market Expert, noted the weak performance in the markets during the end of July and August. He indicated that a bottom in earnings downgrades for Q1, FY2026, could herald a slow recovery for Indian markets in the latter half of the fiscal year. Additionally, anticipated GST 2.0 tax cuts, set to be unveiled on September 4th, are expected to drive consumption.
Globally, the US economy provided a boost with its Q2 GDP revision to 3.3%, sending the S&P 500 to new heights. Market observers await the US PCE index data release today, which may impact the potential for a Federal Reserve rate cut on September 17th. Back home, broader NSE indices, including Nifty Midcap 100 and Nifty Smallcap 100, also posted gains, with sectoral indices like Nifty FMCG and Nifty Media leading the rise.
(With inputs from agencies.)
Google News