Indian Markets Eye Positive Open Following Strong GDP Data Amid Geopolitical Tensions

Indian equity markets are expected to open higher on Tuesday, supported by stronger-than-expected domestic economic growth data. GIFT Nifty futures stood at 24,178 points as of 7:59 am IST, indicating a positive start for the Nifty 50 following its close at a one-month low of 24,080.4 on Monday.

India's economy expanded by 7.8 per cent year-on-year in the April-June quarter. The growth figures exceeded forecasts, driven by an investment boom, manufacturing strength, and solid consumer demand. The upside surprise for Asia's third-largest economy comes as geopolitical tensions involving the US and Iran continue to influence global markets.

Fresh escalations in West Asia, including missile exchanges and rising tensions in the region, pushed Brent crude futures up to $91 per barrel. The geopolitical jitters previously caused the 50-stock index to lose 1.2 per cent in August, with major heavyweights such as HDFC Bank and Reliance Industries leading the drag. Asian stocks remained largely unchanged as selling pressure pushed global bond yields to new highs.

Market participants are also focusing on the weekly expiry of Nifty 50 derivatives contracts. The introduction of India's new closing auction session for stocks with derivatives contracts has contributed to sharp swings in the cash market and options segment on expiry days. On Monday, provisional data indicated that foreign investors sold Indian shares worth ₹7,986 crore ($839.20 million).

In corporate developments, ITC announced that its IT unit, ITC Infotech, will acquire a 22.1 per cent stake in Happiest Minds Technologies for approximately ₹1,330 crore ($139.76 million) in cash. ITC stated that ITC Infotech would subsequently list on stock exchanges following the completion of the deal.

Additionally, Oil and Natural Gas Corp Chairman A.K. Singh stated that the company plans to invest ₹1 lakh crore ($10.51 billion) over five years to explore local deepwater and ultra-deep water fields. Meanwhile, newly listed Milky Mist Dairy Food reported a multi-fold increase in profit to ₹64.68 crore for the April-June quarter, alongside a 43.6 per cent rise in revenue.

"The 7.8% GDP growth for the April-June quarter highlights the underlying resilience of the Indian economy, driven by strong manufacturing and consumer demand. However, external macroeconomic factors such as rising crude oil prices due to West Asia tensions and foreign institutional outflows warrant caution. For businesses and investors, navigating this phase requires balancing strong domestic fundamentals with vigilance regarding global supply chain and energy price volatility." — Dr. Shishir Gupta, Founder & CEO, StartupLanes