New Delhi [India], August 30 : Indian stock indices settled the week's trade on a high, keeping the gains that were accumulated throughout the day intact. The indices were supported by continued buying by foreign portfolio investors.
FPIs who were aggressively selling stocks in India have again started accumulating stocks here, the latest data from National Securities Depository Limited showed.
Both the indices Sensex and Nifty today touched fresh record highs early in the day, to later pare some of their gains. They closed 0.3 per cent higher each at 82,365.77 points and 25,235.90 points, respectively, marginally below their record highs.
Among the sectoral indices, pharma, realty, and healthcare were the three top movers today.
"US Fed Chair Jerome Powell's statement in Jackson Hole signaling imminent rate cuts, as well as greater confidence in a soft landing, helped prop up emerging markets, including India," said Shrikant Chouhan, Head Equity Research, Kotak Securities.
"FPI flows are expected to remain volatile," Chouhan further added.
US Federal Reserve Chair Jerome Powell gave a strong indication that it was time for the US central bank to reduce interest rates as inflation rates were aligning with its target.
Addressing the much-awaited Jackson Hole Symposium last week, Powell said that "the time has come for policy to adjust" but stopped short of giving a hint on the quantum of interest rate cut.
Possible rate cuts in the US may make investments lucrative in emerging markets, including India.
"Global markets are currently resonating with the US Fed's pledges of a rate cut in September. The US and Indian markets have regained the recent highs, reflecting the continuation of this optimism," said Vinod Nair, Head of Research, at Geojit Financial Services.
Going ahead, the markets will react to Q1 GDP data, scheduled to be released later today.
The Reserve Bank of India, in its latest monetary policy meeting, projected GDP growth for 2024-25 at 7.2 per cent, with growth for Q1 expected at 7.1 per cent, Q2 at 7.2 per cent, Q3 at 7.3 per cent, and Q4 at 7.2 per cent.
India's GDP grew by an impressive 8.2 per cent during the financial year 2023-24, continuing to be the fastest-growing major economy. The economy grew by 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22, according to official data.
The Economic Survey tabled in Parliament last month "conservatively" projected India's real GDP growth at 6.5-7 per cent for 2024-25, acknowledging that market expectations are higher. Real GDP growth is the reported economic growth adjusted for inflation.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor