Opening Bell : Markets likely to make flat to positive start amid strong GDP data
Indian equity markets are likely to make flat to positive start on Monday, following the release of strong GDP data. Traders are likely to take some support from Prime Minister Narendra Modi's first visit to China in 7 years, with both leaders stressing that India and China are partners, not rivals.
Some of the key factors to be watched:
India's GDP grows stronger than expected to 5-quarter high of 7.8% in April-June: India's GDP grew by a stronger-than-expected 7.8 per cent in April-June, its fastest pace in five quarters, before US President Donald Trump imposed tariffs that now cloud the outlook, threatening key exports like textiles.
Indian economy to sustain high growth momentum in coming quarters: Chief Economic Adviser (CEA) V Anantha Nageswaran has said that the high growth momentum exhibited in the first quarter of the current fiscal is expected to continue in the coming quarter as well, with a downward bias emanating from high US tariffs.
PM Modi, Chinese President Xi vow to expand economic ties to stabilise world trade: India and China have vowed to expand trade and investment ties to stabilise global commerce as Prime Minister Narendra Modi and Chinese President Xi Jinping agreed to deepen bilateral ties to combat pressing challenges and work towards a fair solution to the festering border issue.
Industrial credit growth declines to 7.6% in June: RBI data showed that growth in bank credit to industries declined to 7.6 per cent in June 2025 from 11.3 per cent a year ago, while the personal loans segment continued to grow faster than overall advances.
India's forex reserves drop $4.38 billion to $690.72 billion: The Reserve Bank of India (RBI) has said that India's forex reserves drop $4.38 billion to $690.72 billion.
On the global front: The U.S. markets ended in red on Friday, as market shrugged off closely watched Commerce Department report showing U.S. consumer prices increased in line with street estimates in the month of July. Asian markets are trading mostly in red on Monday, following the broadly negative cues from Wall Street overnight.
Back home, Indian equity benchmarks fell on Friday, extending their downward journey to the third day, as investors continued to reel under pressure caused by the imposition of high tariffs and relentless foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,856.51 crore on Thursday, according to exchange data. Finally, the BSE Sensex fell 270.92 points or 0.34% to 79,809.65 and the CNX Nifty was down by 74.05 points or 0.30% to 24,426.85.
Some of the important factors in trade:
US tariff hike to moderate India's growth by 0.5%: Former Commerce and Home Secretary G K Pillai has said that a steep 50 per cent tariff imposed by the US on shipments from India would have a very small impact on India's economic growth of about 50 basis points if exporters are unable to find alternative markets.
US tariff uncertainties pose downside risk to demand in Indian economy: RBI Bulletin has indicated downside risk to the overall demand in the Indian economy owed to persisting uncertainties related to the US trade policies.
India industrial output growth at 3.5% in July: India's industrial production growth accelerated to a 4-month high of 3.5 per cent in July this year due to good performance of manufacturing sector. The country's industrial output earlier recorded this level of growth at 3.9 per cent in March 2025.
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