Stocks Stall Despite Blazing GDP Growth
- Markets ended flat despite India posting strong Q2 GDP growth of 8.2%, showing investor caution near record highs.
- Banking and financial stocks dragged indices lower, while auto, metal, and IT offered limited support.
- Focus shifts to RBI policy and global data as traders stay selective ahead of key economic cues.
The Indian equity market closed almost unchanged for the second straight session on Monday, December 1, as investors stayed cautious despite strong economic data. The Sensex slipped 65 points, or 0.08 percent, to close at 85,641.90, while the Nifty 50 declined 27 points, or 0.10 percent, to settle at 26,175.75.
In the previous session as well, markets had ended nearly flat, showing a lack of strong directional movement. On Monday, the Nifty 50 opened at a record high near 26,325, driven by positive sentiment at the start of the day. However, selling pressure during the session erased early gains, pulling the index lower by the close.
This slow market performance came despite encouraging macroeconomic data. India’s GDP grew by 8.2 percent in the second quarter, the highest growth rate in six quarters. The strong figure reflected healthy demand and better performance across several sectors. While the data lifted sentiment, it failed to spark a broad rally in stocks.
Banking and financial stocks were among the biggest drags on the market. Shares of HDFC Bank, Bajaj Finance, and State Bank of India remained under pressure, limiting the upside in benchmark indices. Realty and pharma stocks also closed in the red, while auto, metal, and IT stocks managed minor gains.
Ajit Mishra, Senior Vice President at Religare Broking, said the market remained in a consolidation phase near record levels. He added that while GDP data, global cues, and steady domestic institutional buying offered support, investors remained cautious ahead of the upcoming RBI policy decision and important US economic data.
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Several companies announced key developments that may influence trading activity in the coming sessions:
Bajaj Housing Finance: Promoter Bajaj Finance plans to sell up to 2 percent stake in the open market to meet public shareholding norms.
Ambuja Cements: The company has completed a 4 million tonne clinker capacity expansion at its Bhatapara plant in Chhattisgarh, taking its total capacity to 66 million tonnes.
Hindustan Unilever: Vandana Suri has been appointed executive director for the home care division, effective January 1, 2026.
Indian Hotels: The group’s subsidiary Roots Corporation has acquired majority stakes in Pride Hospitality and ANK Hotels through investments exceeding Rs 190 crore.
Bharat Dynamics: The defence company reported new orders worth Rs 2,461.62 crore since November, including missile systems.
Hyundai Motor India: The automaker reported sales of 66,840 units in November, a growth of over 9 percent year-on-year.
NMDC: Iron ore output rose 11 percent in November, while sales increased by over 4 percent.
Afcons Infrastructure: The company secured EPC contracts worth Rs 884 crore in its marine and industrial segment.
Tata Motors: Passenger vehicle sales increased 26 percent year-on-year in November.
Aditya Birla Capital: The firm announced a Rs300 crore investment in its housing finance unit through a rights issue.
Overall, the market mood remains steady but cautious, as investors balance strong economic signals with global uncertainty and policy expectations.
