Share Market News: Nifty Witnesses All-Time High in December Due to GDP Performance, Know The Correlation

05 Dec, 2023 Author: Ayushee Joshi

Share Market News: On the first of December, the Nifty set a new high. The BSE Sensex rose 271 points, or 0.41 percent, to 67,260 points in early trade, while the Nifty rose 90 points, or 0.44 percent, to 20,223 points. In the second quarter, the country’s GDP increased by 7.6 percent. The economy performed better than expected, owing primarily to growth in the manufacturing sector. The RBI predicted a 6.5 percent growth rate.

Role of GDP in Nifty

In the September quarter, India’s GDP growth rate was higher than expected, leading to a positive impact on the bullish market. During trading, the Nifty reached a new high of 20,291 points. In addition, the return of foreign investors in the market, the recent election results, a strong surge in tax collection, and improved performance in eight major industries all helped to boost market sentiment. The latest GDP figures have also fallen short of the Reserve Bank of India’s (RBI) forecasts. Previously, the GDP growth rate in the first quarter of the current fiscal year 2024 was 7.8 percent. In comparison, the country’s GDP growth rate in the September quarter of last year was 6.3 percent.