Markets Soar on GDP Surge as Gold Shatters All-Time Highs

Risk-on sentiment floods markets amid roaring economic data—while gold reminds everyone it still loves a good crisis.

GDP Optimism Fuels Rally

Stocks jump as GDP projections blow past expectations. Investors pile into equities, betting strong growth will continue driving corporate earnings higher.

Gold's Record Run

Meanwhile, gold hits unprecedented levels—because nothing says 'optimism' like hedging against everything falling apart. The metal's surge highlights the split personality of today's markets: cheerleading growth while quietly preparing for collapse.

Traders celebrate the numbers while gold winks from the corner—the ultimate 'just in case' asset for when Wall Street's optimism meets Main Street's reality.

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Among top gainers on the Nifty50, Reliance Industries led with a 1.85 per cent jump to ₹1,378.90, followed by Eternal at 1.40 per cent to ₹325.60, NTPC up 1.24 per cent to ₹334.80, Nestle India gaining 0.93 per cent to ₹1,185.30, and Tata Consumer Products rising 0.86 per cent to ₹1,084.90. On the downside, Mahindra & Mahindra fell 1.14 per cent to ₹3,277.60, Dr. Reddy’s declined 0.85 per cent to ₹1,269.00, Asian Paints dropped 0.64 per cent to ₹2,553.70, Infosys shed 0.63 per cent to ₹1,490.00, and UltraTech Cement lost 0.53 per cent to ₹12,758.00.

The IT sector showed particular strength, benefiting from the rupee hitting fresh lows against the dollar. “IT stocks led the charge, gaining from the rupee hitting fresh lows against the dollar,” noted Hariprasad K. Individual IT stocks like Infosys gained 2.07 per cent and Tech Mahindra ROSE 1.63 per cent in pre-market commentary, though opening numbers showed some moderation.

Foreign institutional investors remained net sellers, offloading ₹1,430 crore worth of equities on Monday, while domestic institutional investors provided strong support with net purchases of ₹4,345 crore. “FIIs remained net sellers, offloading ₹21,152 crore last week, ₹46,908 crore in August, and ₹74,159 crore so far in FY26,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.

Global factors provided mixed signals as geopolitical tensions persist. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, warned that “India-US relations have deteriorated and normalcy appears difficult in the NEAR future. More actions from the unpredictable US administration are likely.”

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Technical indicators suggest continued bullish momentum. “In the 30-minute timeframe, Nifty has broken out of a falling wedge pattern, a bullish reversal setup. Sustaining above 24,540–24,500 keeps the trend positive, with upside targets at 24,700–24,800 and potentially 24,900,” according to Hariprasad K.

Volatility cooled significantly with India VIX slipping over 3 per cent yesterday, easing market sentiment. Mandar Bhojane, Sr Technical & Derivative Analyst at Choice Broking, noted that “Nifty formed a Morning Star candlestick pattern, signaling a potential reversal and renewed strength.”

In the commodities space, Gold prices hit record highs amid expectations of US Federal Reserve rate cuts. “Gold prices hit a record high on continued expectations of a U.S. Federal Reserve rate cut and ongoing weakness in the U.S. dollar,” said Darshan Desai, CEO of Aspect Bullion & Refinery. Gold has support at ₹1,04,140-₹1,03,640 while resistance is at ₹1,05,350-₹1,05,750.

Crude oil futures also traded higher on Tuesday morning following supply disruption concerns. November Brent oil futures were at $68.47, up 0.47 per cent, while September crude oil futures on MCX traded at ₹5,728, up 0.44 per cent from the previous close of ₹5,703.

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“Crude oil prices gained in the international markets amid supply fear from Russia due to delay in the ceasefire deal,” explained Rahul Kalantri, VP Commodities at Mehta Equities Ltd. He added that “the U.S. President’s threat for imposing more sanctions on Russian oil is supporting crude oil prices.”

The banking sector showed resilience with Bank Nifty forming a Morning Star pattern and closing strongly above the 54,000 mark. “If the price sustains above 54,400, it has the potential to MOVE towards 55,000 and 56,000 in the coming days,” noted Bhojane.

Market participants are now focusing on upcoming events including the GST Council meeting scheduled for September 3-4 and US Nonfarm Payrolls data on September 5. “Traders eye the GST Council meet on September 3–4,” with sentiment torn between trade tensions and optimism around government reforms, according to Tapse.

Today also marks the first Tuesday weekly expiry for Nifty options contracts, adding to trading activity. With Gift Nifty indicating a positive opening, market experts suggest adopting a buy-on-dips

Published on September 2, 2025