The strong momentum seen last week has led to the hope of the momentum continuing in the week ahead. However, sustenance of the momentum depends on the outcome of certain crucial events such as the outcome of the assembly elections that took place in 5 states, the outcome of which will be out on Sunday.
The first thing to watch out for will be the outcome of the assembly elections that took place in Chhattisgarh, Madhya Pradesh, Mizoram, Rajasthan and Telangana. The results will be declared on Sunday.
While the Q2 GDP growth rate at 7.6% surpassed all expectations, Street favourite BJP is seen winning the key Hindi belts of Rajasthan and Madhya Pradesh. Historically, too, December has been dominated by bulls as in the last 12 years, Nifty has ended in the green on seven occasions.
Services seen as contributing the largest share of overall growth in the second quarter, even as the sector, along with agriculture, may see a slight moderation in growth.
India Business News: Most analysts expected the Q2 GDP growth data to moderate to around 6.8%. The 7.6% GDP growth is a slight moderation from the 7.8% GDP growth witnesse