Indian Stock Market Today 1 September 2023: The Indian stock market kicked off September with a bang, delivering a remarkable performance on the first day of the September F&O (Futures and Options) expiry. Both the Sensex and Nifty 50 indices surged by an impressive 1%, marking a robust start to the month’s trading.
How Indian Benchmarks Performed Today
Indian stock market benchmarks staged a remarkable comeback today, breaking free from a week of consolidation and weakness. The S&P BSE Sensex soared by an impressive 555.75 points, marking a 0.86% surge, closing at a formidable 65,387.16.
Simultaneously, the Nifty 50 displayed its resilience by surging 181.50 points, a substantial 0.94% gain, concluding the day at an impressive 19,435.30. Additionally, the Bank Nifty joined the rally, contributing a substantial 446.95 points, registering a remarkable 1.02% surge, and closing at a strong 44,436.10.
GDP Growth Sparks Investor Enthusiasm
The Indian economy set the stage for this bullish run with a stellar GDP growth report for the June quarter, revealing a remarkable 7.8% expansion. This marked a significant improvement over the previous quarter’s 6.1% growth and a substantial 13.1% surge compared to the same period last year.
The services sector did really well and was a big reason for this growth.
Moody’s Investors Service swiftly responded to these encouraging numbers by revising its growth forecast for India in 2023 upward to 6.7%, a notable increase from its earlier projection of 5.5%.
The Auto Ignites the Market
The automotive sector played a pivotal role in boosting market sentiment. In August, numerous companies reported robust growth in their wholesale numbers, gearing up for the upcoming festive season with enticing new model launches.
Noteworthy among them, Mahindra & Mahindra reported a staggering 19% increase in car sales, while Maruti Suzuki India set a new record with 189,082 units sold in a single month. Ashok Leyland also performed exceptionally well, achieving a 17% rise in sales of medium and heavy commercial vehicles.
Global Positivity Fuels Indian Markets
Positive news from China had a ripple effect across Asian markets, including India. China’s factories outperformed expectations in August, with manufacturing activity surging from 49.2 in July to 51, as indicated by the Caixin/S&P Global Manufacturing Purchasing Managers’ Index.
This upbeat news bolstered stock markets in China, South Korea, Malaysia, Singapore, and Japan, all closing the day with gains ranging from 0.3% to 0.5%.
Winning Sectors Shine
Across the BSE stock exchange, several sectors enjoyed substantial gains, notably metals, utilities, power, telecommunications, and infrastructure, which all recorded impressive increases ranging from 2.6% to 3.2%.
China’s positive economic indicators breathed new life into undervalued stocks in India, with companies like National Aluminium, the Steel Authority of India (SAIL), NMDC, and Hindustan Copper (HINDCOPPER) witnessing substantial gains, pushing their stock prices up by 4% to 7%.
Banking stocks also thrived, following the overall market trend, with the Nifty Bank index surging by more than 1% to reach an intraday high of 44,568.55.
Small-Cap Stocks Join the Rally
Notably, it wasn’t just large corporations enjoying the market’s positive momentum. Smaller companies also thrived during this upswing, with stocks of companies like Latent View Analytics, IRB Infrastructure Developers, Trident, EIH, India Cements, MTAR Technologies, Indian Railways Finance Corp., and Bharat Heavy Electricals experiencing remarkable gains ranging from 7% to 12%.
Maruti and M&M Reach Record Highs
Even well-known Nifty 50 companies like Maruti Suzuki India and Mahindra & Mahindra (M&M) scaled new heights, achieving all-time high stock prices of Rs 10,397.95 and Rs 1,604.50, respectively.
Investors are riding the wave of optimism, and this positive sentiment is expected to persist as India’s economy strengthens, particularly in sectors such as automotive and metals.
