Indian Stock Market Shares Modest Gains as Session Closes Higher on Growth Forecast

Indian equities rebounded after a soft opening on Thursday, with benchmark indexes staging a turnaround as fresh economic data boosted investor confidence. The positive momentum in this trading session was fueled by India’s impressive growth trajectory, reaffirming its position as the world’s fastest-growing major economy for four consecutive years.

Economic Growth Forecast Reverses Market Session Dynamics

The turning point in the session came when the Economic Survey released its First Advance Estimates, revealing that FY26 real GDP growth is projected at 7.4 percent, with Gross Value Added (GVA) expanding at 7.3 percent. “India is an oasis of economic performance in the global scenario. The growth numbers stand out in comparison to any other part of the world,” noted Chief Economic Adviser V.A. Anantha Nageswaran, underscoring India’s outperformance relative to other major economies facing slower growth trajectories.

Benchmark Indexes Share Positive Momentum

The BSE Sensex gained 221.69 points, or 0.27 percent, settling at 82,566.37 after dipping to an intraday low of 81,707.94 during the volatile trading session. The broader NSE Nifty index similarly recovered, closing up 76.15 points, or 0.30 percent, at 25,418.90. Despite the positive close, the session faced headwinds from external pressures including yen volatility and escalating U.S.-Iran tensions, along with concerns over a potential U.S. government shutdown this week related to DHS funding.

Market Share Breadth Shows Mixed Signals

While the headline indexes recovered ground in Thursday’s session, broader market participation revealed weakness. The BSE mid-cap index edged up by 0.1 percent, whereas the small-cap index slipped 0.2 percent. The market breadth reflected cautious investor sentiment, with 2,529 shares declining while only 1,708 shares advanced and 152 remained unchanged. This disparity suggests that gains were concentrated among select large-cap stocks rather than distributed across the broader market.

Top Performing Shares Lead Index Recovery

Among the standout gainers, select shares drove the benchmark recovery. NTPC, Eternal, Axis Bank, Larsen & Toubro, and Tata Steel each jumped 3-4 percent, accounting for a significant portion of the session’s upside. These heavyweight shares’ performance was instrumental in pushing the indices higher despite the challenging external environment and mixed breadth signals within the trading session.

Looking ahead, traders and investors are watching for signals from the Union Budget announcement expected this weekend, which could shape market sentiment in the coming trading sessions and influence share valuations across sectors.