Markets rally on robust Q1 GDP; IT,Auto lead gains

The Indian equity benchmarks began the new week and month with gains on Monday as stronger-than- expected GDP figures lifted investor confidence. The economy expanded 7.8 percent in Q1, surpassing projections and fueling broad-based buying led by IT and auto stocks.At close, the Sensex was up 554.84 points or 0.70 percent at 80,364.49, and the Nifty was up 198.20 points or 0.81 percent at 24,625.05. About 2681 shares advanced, 1320 shares declined, and 173 shares unchanged.
Bajaj Auto, M&M, Trent, Infosys, Asian Paints, and Power Grid Corp were the top gainers on the Nifty,while losers included ITC, Sun Pharma, Reliance Industries, Tata Consumer Products, and HDFC Bank.The Nifty Midcap and Smallcap indices surged over 1 percent each, indicating strong participation beyond large-caps.
Rupee Close: 
On 1 Sep'25,the Indian rupee depreciated 10 paise to close at an all-time low of 88.19 (provisional) against the US dollar on Monday amid Indo-US trade deal uncertainties and higher dollar demand from importers.Forex traders said the rupee opened on a weaker note this morning and revisited its all-time intra-day low of 88.33 against the American currency, weighed down by persistent foreign fund outflows.
Trading Guide:
Vinod Nair, Head of Research, Geojit Investments Limited stated,India’s Q1 GDP growth of 7.8%, exceeding projections, has reinforced investor confidence in the economy’s resilience amid global uncertainties. Expectations of GST rationalisation at the upcoming council meeting continue to bolster sentiment, supporting discretionary consumption. This optimism is particularly benefiting sectors such as Auto and Consumer Durables. However, the risk of a potential revenue shortfall from proposed GST slab adjustments has heightened concerns over increased government borrowing, pushing domestic bond yields higher. Additionally, the impact of recently imposed tariffs is expected to become more evident from Q2 onwards, with markets awaiting greater clarity on their wider economic implications, which will be pivotal in determining near-term market trends.
Market experts recommended five stocks to buy on Monday-STEL Holdings, Asian Energy Services, Ather Energy, Commercial Syn Bags, and Lotus Eye Hospital and Institute.

(Business Correspondent)