India equity market: Indian equities back in the green on improved GDP show – News Air Insight

Mumbai: India’s equity benchmark bounced back on Monday after three sessions of losses as better-than-expected GDP data triggered a rebound in an oversold market. Analysts said, however, that the overhang from US tariffs, currency weakness, and subdued earnings expectations could keep gains under check.

The NSE Nifty finished at 24,625, up 0.8%, or 198 points. The BSE Sensex closed at 80,364, 0.7%, or 554 points higher. Both indices fell around 1.5% in August.

The Volatility Index (VIX) – the market’s fear gauge – dropped 3.9% to 11.29 on Monday, in line with the market rebound.

“Benchmark Nifty fell a lot in the last three trading sessions, which led to a technical bounce in oversold markets,” said Rohit Srivastava, founder, indiacharts.com. “In the near term, there is a downward risk towards 23,800 levels since the earnings growth is expected to be muted, despite the GDP numbers.”

The broader market ended stronger than the blue chips with the Nifty Mid-cap 150 and the Small-cap 250 indices advancing 1.7% and 1.4%, respectively, on Monday. Out of the 4,380 shares traded on BSE, 2,705 advanced, while 1,495 declined.

In the past week, the mid-cap and small-cap indices dropped 1.5% and 1.9%, respectively.All sectoral indices closed higher except the media and pharma indices. Nifty Auto and consumer durables indices gained 2.8% and 2.1%, respectively. Nifty Metals and IT indices rose 1.6% each, while the oil & gas index advanced 1.4%.Srivastava said the tariff threat from the US led to weakness in the rupee, which is a macroeconomic risk that could keep a lid on the gains. FPIs sold shares worth a net ₹1,430 crore on Monday. Their domestic counterparts bought shares worth ₹4,345 crore.. In August, global investors dumped shares worth ₹41,908 crore.