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India's GDP Surges: Moody's Raises Growth Forecast to 7% Amidst Global Flux
18 Sep
Summary
- Moody's raised India's FY27 GDP forecast to 7% due to strong domestic activity.
- Key equity benchmarks closed mixed, with metals and realty stocks rallying.
- Major IPOs like NSE, Jindal Supreme, and Hero Motors saw significant investor interest.
Indian equity benchmarks experienced a mixed trading session on Friday, influenced by declining crude oil prices and a decrease in global bond yields. Moody's Ratings elevated its forecast for India's Gross Domestic Product (GDP) growth in Fiscal Year 2027 to 7%, an increase from the previous 6% projection. This upward revision reflects stronger-than-anticipated domestic economic activity and the nation's resilience against disruptions from the ongoing conflict in West Asia.
Despite the positive economic outlook, Moody's also highlighted potential risks to inflation and consumption, primarily due to elevated energy prices and food price pressures associated with El Niño. These factors could also impact government subsidy spending and necessitate additional fiscal support, potentially constraining fiscal consolidation efforts, although rising defense and infrastructure spending are also noted.
The benchmark Sensex concluded the day with a marginal loss, while the Nifty 50 index registered gains, closing above the 23,300 mark. Leading the gains were stocks in the metal and realty sectors, while IT and consumer durables saw declines. In the primary market, the National Stock Exchange (NSE) IPO achieved full subscription by Friday afternoon, alongside active investor interest in other ongoing public offerings.
The broader market segments, including the BSE MidCap and SmallCap indices, demonstrated stronger performance than the frontline indices, indicating positive investor sentiment. The India VIX, a measure of market volatility, saw a notable decrease. Recent IPOs such as Veegaland Developers showed a premium on listing, while other stocks like GPT Infraprojects and Concord Biotech saw significant gains due to new orders and regulatory clearances, respectively.
