New Delhi, March 4 (IANS) – The Nifty witnessed a significant 350-point rally on Friday, driven by the unexpected Q3 GDP growth of 8.4% year on year. According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the strong economic momentum triggered short covering, boosting the Nifty.
The GDP numbers, though positive, come with a caveat of statistical aberration. While the GVA in Q3 stood at 6.5%, a 32% surge in indirect taxes contributed to the overall growth. Despite the upbeat figures, consumption numbers remain subdued, leading to cautious optimism rather than unchecked bullishness, Vijayakumar explained.
A recent advisory by SEBI to mutual funds regarding excessive valuations in mid and small cap schemes may dampen the broader market’s performance. Vijayakumar warned that irrational exuberance in the market lacks fundamental justification, potentially curbing further gains.
As of now, the BSE Sensex is trading at 73,792.61 points, showing a slight decline of 13.54 points. However, NTPC and Powergrid stocks are up by 3% and 2% respectively, indicating some positive movement in select sectors.
–IANS
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