Indian shares soften, investors now waiting for second quarter GDP data for fresh signals

New Delhi: Indian shares remained flat as the opening bell rang on Tuesday, mainly due to absence of any significant fresh cues.

After the Thanksgiving holiday, investors in the American market also heaved a sigh of relief. The benchmark indices – Sensex and Nifty – were only a few points higher than Friday’s close.

Indian stock markets were closed for trading on Monday on the occasion of Guru Nanak Jayanti. In the last month, Indian stock indices have gained about 3 per cent on a cumulative basis.

VK Vijayakumar, chief investment strategist at Geojit Financial, said, “Market conditions are becoming favorable with the help of global and domestic factors. Globally, there is a tailwind from the US market, with the S&P 500 up 8.7 per cent so far this month.” There has been an increase.”

Vijayakumar said, “At the domestic level, macro indicators indicate strong growth momentum in the economy. Record order inflows for capital goods companies and strong credit growth are strong indicators of growth momentum in the economy. The only unknown now is the state election outcome. ” Added.

Exit polls on Thursday are likely to give an indication of the election results and its impact on the crucial general elections in 2024.

Investors widely track elections, be it assembly or general elections, to assess possible future political developments.

“This week is likely to be volatile, but there is a possibility of a rally soon. FIIs (foreign institutional investors) have already become buyers. Fund inflows from FIIs and DIIs (domestic institutional investors) are large,” said Vijayakumar of Geojit Financial. “Could trigger a cap-led rally.” Services further said.

On the domestic front, investors are now awaiting second quarter GDP data due on Thursday and S&P Global Manufacturing PMI later on Friday. India’s GDP growth in the June quarter was 7.8 percent.