Equity Indices Rise Slightly Ahead of GDP Data Release
On February
28, 2023, equity benchmark indices in India climbed slightly in early trade,
supported by buying in IT counters and a positive global trend in markets. This
growth comes ahead of the release of India's GDP data. As a result, the BSE
Sensex rose 144 points to 59,433.20, while the NSE Nifty advanced 35.55 points
to 17,428.25.
The major
gainers from the Sensex pack were Mahindra & Mahindra, Tech Mahindra, Tata
Consultancy Services, Tata Motors, Sun Pharma, Infosys, HCL Technologies,
Larsen & Toubro, HDFC, Wipro, Titan, and HDFC Bank. Meanwhile, the State
Bank of India, Reliance Industries, Bharti Airtel, and IndusInd Bank were among
the laggards.
Asian markets
such as South Korea, Japan, China, and Hong Kong were trading positively.
Additionally, the US markets ended higher on Monday.
On February
27, 2023, the BSE benchmark declined by 175.58 points or 0.30% to settle at
59,288.35, while the Nifty fell by 73.10 points or 0.42% to end at 17,392.70.
This decline was due to the ongoing coronavirus pandemic, which has affected
economies worldwide, including India.
International
oil benchmark Brent crude also advanced by 0.17% to USD 82.59 per barrel. The
rising prices of crude oil have affected India's import bill and current
account deficit, leading to a rise in the prices of essential commodities such
as fuel and food.
Foreign
Portfolio Investors (FPIs) offloaded shares worth INR 2,022.52 crore on
February 27, 2023, according to exchange data. This reflects a trend where
foreign investors are turning away from emerging markets such as India, which
has been hit hard by the pandemic and other economic factors.
The Indian
government has been taking measures to boost the economy, such as tax cuts and
spending on infrastructure projects. However, the economy has been slow to
recover, and growth has been tepid.
The release of
India's GDP data will be closely watched by investors, as it will give an
indication of the health of the economy. The government has set a target of
achieving a $5 trillion economy by 2025, but this goal seems unlikely given the
current economic climate.
In conclusion,
the equity benchmark indices in India rose slightly ahead of the release of GDP
data. The positive trend in the global markets and buying in IT counters have
contributed to this growth. However, the ongoing pandemic and rising crude oil
prices have affected the Indian economy, and foreign investors have been
offloading shares. Therefore, the release of GDP data will be closely watched
by investors as it will give an indication of the health of the economy.