Indian stock markets fell after starting steady on Monday, as selling pressure increased following the release of GDP figures that were lower than anticipated last week.
The Nifty 50 index opened with a modest gain of 9 points at 24,140 points, while the BSE Sensex index dropped by 58 points to start at 79,743.87.
Experts highlighted that today's markets will be significantly impacted by the lowered growth rate. The markets are already facing challenges due to underwhelming second-quarter results, and the reduced GDP figures could intensify the selling pressure.
The Indian markets are experiencing pressure today because the GDP figure was lower than expected. Since GDP is a lagging indicator, this had largely been anticipated. The decline in corporate earnings from the previous quarter had already indicated weak GDP growth.
The primary worry is that the post-Covid recovery is losing steam, and without counter-cyclical measures from fiscal and monetary policies, GDP may stay at these levels. This scenario makes the valuations of Indian markets seem even more overvalued, adding additional strain.
A mixed trend was observed in the sectoral indices on the National Stock Exchange. Sectors such as Nifty Auto, Nifty Media, Metal, Pharma, and Realty saw gains, whereas Nifty Bank, Nifty FMCG, Nifty IT, and Nifty Oil and Gas experienced declines at the time this report was filed.
Adani Green's shares kept rising, increasing by over 6 percent. In the Nifty 50 index, 15 stocks saw gains, while 34 experienced declines at the time of this report.
The nifty's recovery on Friday created a 'bullish belt-hold' pattern as most of the previous day's losses were recovered. This pattern occurs when a bullish day with an open at the day's low follows a long bearish day. This makes Thursday's low of 23,873 significant for both bulls and bears, with resistance still strong at 24,360 and then at 24,540,
The Nifty's recovery on Friday resulted in a 'bullish belt-hold' pattern, as most of the previous day's losses were regained. This pattern occurs when a bullish day, with its opening price matching the lows, follows a long bearish day. Consequently, Thursday's low of 23,873 is significant for both bulls and bears, while resistance is firm at 24,360, followed by the 24,540 area,
In other Asian markets on Monday, except for Taiwan's Weighted Index, which rose by over 2 percent, other markets stayed unchanged. Japan's Nikkei 225, Hong Kong's Hang Seng Index, and South Korea's KOSPI Index were all trading flat at the time of this report.