The stock market is expected to open higher on Monday, June 2, following better-than-expected GDP numbers for the March quarter. The Gift Nifty futures were trading at 24,841.5 at 8:07 am, suggesting a positive start above Friday’s Nifty 50 close of 24,750.7.
India’s economy grew by 7.4% in the January-March quarter, surprising many analysts. The growth was mainly driven by strong activity in the construction and manufacturing sectors. This fresh data has boosted investor confidence going into the new trading week.
Market experts believe the positive growth numbers may help Nifty and Sensex start the week on a strong note.
VLA Ambala, Co-Founder of Stock Market Today, said, “Nominal GDP reached Rs 330.68 lakh crore, reflecting resilience in domestic demand.” Ambala added that if the market opens lower by chance, the levels of 24,520 and 24,450 may act as support. On the higher side, resistance may come in at 24,880 and 25,030.
The upbeat GDP figures, along with other good signs such as early monsoon progress and low inflation outlook, are expected to support the overall mood of the market.
Many traders are now looking at sectors that respond quickly to changes in interest rates, such as banks, automobiles, real estate and consumer goods. These may see more interest if the Reserve Bank of India cuts interest rates at its meeting on June 6. The market is already expecting a 25-basis-point rate cut.
Even though both the Sensex and Nifty fell slightly on Friday, they ended the month of May in the green. This marked the third month in a row of gains, supported by strong foreign investments, better company results, and lower worries about trade issues. However, both indexes are still around 6% below the record highs they reached in September 2024.
On Friday, foreign portfolio investors (FPIs) turned net sellers after five days of buying, but overall, they remained net buyers for the month of May. FPIs brought in $2.34 billion last month, the highest monthly inflow since September 2024.
Auto stocks will be closely watched in today’s trade as companies have reported their sales numbers for May. Investors will also keep an eye on other sectors like financial services and real estate.
In global markets, the picture was mixed. Most Asian markets opened lower as investors remained cautious. They are waiting for key economic data from the United States, especially job and manufacturing numbers, while keeping an eye on trade policies.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)