Q2 GDP data: Following the release of better-than-expected Q2 GDP data on Friday, experts have predicted a strong gap-up opening for the Indian stock market on Monday. They said that a surprise 8.20% Q2 GDP growth print in India is expected to attract the attention of both domestic and foreign investors and predicted banking and manufacturing stocks to outperform the other sectors.
Market experts advise investors to consider PSU bank shares, such as SBI, Canara Bank, and Union Bank of India. In contrast, they bet heavily on manufacturing stocks, including Asian Paints, Larsen & Toubro (LT), Mahindra & Mahindra (M&M), Bajaj Auto, Cochin Shipyard, and Mazagon Dock Shipbuilders. Predicting an IMF rating upgrade for India in the near term after this surprising Q2 GDP data print, they also expect a trend reversal in the FII’s trade pattern, which is expected to fuel quality mid-cap and small-cap stocks.
What does the Q2 GDP data mean for Dalal Street?
On how Q2 GDP data would impact the Indian stock market, Sandeep Pandey, Co-founder of Basav Capital, said, “The Indian GDP print for Q2FY26 is expected to change the view of global institutions like the IMF and a rating upgrade from the global body is expected in the near term. This is expected to change the mindset of the foreign investors about the Indian stock market, and a trend reversal in FII’s trade pattern is expected after the better-than-expected Indian GDP data for Q2FY26.”
Expecting demand for the small-cap and mid-cap stocks in the near-term, Avinash Gorakshkar, a Mumbai-based SEBI-registered fundamental equity analyst, said, “Last week, we witnessed the key benchmark indices climbing to their all-time highs, but the broad markets remained under the selling pressure. Now, after the strong Q2 GDP data in India, this rally on Dalal Street is expected to become a participatory rally as bulls may start looking for the value picks in the mid-cap and the small-cap segments.”
Nifty 50 may touch 27,000
Expecting a gap-up opening on Monday, Sandeep Pandey of Basav Capital said, “Bulls are expected to outshine bears when the Indian stock market opens on Monday. The Nifty 50 index may try to touch 26,500 in the first few sessions next week. However, if the 50-stock index breaks above 26,500 on a closing basis, we may expect the key benchmark index to touch 27,000 levels next month.” Pandey said the Nifty 50 index has strong and crucial support placed at 25,800 to 25,750 levels. However, he advised investors to look at quality stocks with strong fundamentals, especially in the mid-cap and small-cap segments, if they want to create wealth in the fresh bull trend on Dalal Street.
Stocks to buy on Monday
Asked about the segments that may enable an investor to create wealth in the much-expected bull trend, Avinash Gorakshkar said, “Banking and manufacturing segments are expected to outshine other sectors. In the manufacturing sector, one can look at auto, infrastructure, metal, and chemical sector stocks.”
Regarding stocks to buy on Monday, Sandeep Pandey said, “In the banking space, ICICI Bank share looks promising in the private segment, while SBI, Canara Bank, Indian Bank, and Union Bank of India look strong in the PSU bank segment. Asian Paints in the chemical and paints segment, M&M and Bajaj Auto in the automobile segment, Larson & Tubro (LT), Cochin Shipyard, and Mazagon Dock Shipbuilders in the infrastructure segment, Cipla and Dr Reddy’s Laboratories in the pharma segment, Tata Steel in the metal segment, and Reliance Industries in the oil and petrochemical segment. These 15 stocks are expected to give a sharp reaction on Monday when the Indian stock market opens after the weekend gap.”
Details of Q2 GDP data
Speaking on Q2 GDP data print, Madhavi Arora, Chief Economist at Emkay Global, said, “Q2 GDP growth has exceeded expectations dramatically to 8.2%, led by statistically favourable deflator effects, lagged effects of monetary and regulatory easing and limited hit so far on India’s exports. Some of these factors will spill onto 3Q as well, along with improvement in consumer demand, leading to FY26E GDP comfortably hugging 7%+ print.”
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Key Takeaways
- The Indian stock market is expected to open strong due to better-than-expected Q2 GDP growth.
- Investors should focus on mid-cap and small-cap stocks for potential wealth creation during this bullish trend.
- Banking and manufacturing sectors are highlighted as key areas for investment.
