India's stock market is poised for a strong start on Monday, November 30, 2025, as experts predict a gap-up opening following the release of better-than-expected Q2 GDP data on Friday. The Indian economy has demonstrated surprising resilience, with GDP growth surging to a six-quarter high of 8.2%, surpassing forecasts by economists and the Reserve Bank of India (RBI). This impressive growth is expected to attract both domestic and foreign investors, fueling positive momentum in the market.
Key Drivers of Growth
The robust Q2 GDP growth was propelled by strong performances in the manufacturing and services sectors. Manufacturing output grew by an impressive 9.1%, while the financial, real estate, and professional services segment recorded a strong 10.2% increase. Experts highlight that economic growth was broad-based, with demand indicators such as private consumption and investment demonstrating healthy momentum. Private consumption expenditure also saw a revival, growing by 7.9%. The government's continued push in infrastructure and manufacturing also played a significant role.
Expert Opinions and Market Impact
Analysts believe that the 8.2% GDP growth will positively impact market sentiment and corporate earnings, particularly benefiting sectors like banking, infrastructure, and consumption. Sandeep Pandey, Co-founder of Basav Capital, anticipates that the strong GDP data will lead to a rating upgrade from global institutions like the IMF, potentially reversing the trend in Foreign Institutional Investors' (FII) trade patterns.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the impressive growth reflects a robust economy despite global headwinds. He pointed out the standout performance of manufacturing (9.1% growth) and Gross Fixed Capital Formation (7.3% growth).
However, some experts caution that the impact on the broader market may be limited due to tight liquidity conditions. G Chokkalingam, the founder and head of research at Equinomics Research Private Limited, suggests that while the Sensex and Nifty 50 may continue to rise, mid and small-cap segments might not see as much action due to elevated valuations and liquidity constraints.
Stocks to Watch
Market experts recommend investors to consider stocks in the PSU banking and manufacturing sectors. Specific stocks mentioned include:
- PSU Banks: SBI, Canara Bank, Union Bank of India
- Manufacturing: Asian Paints, Larsen & Toubro (LT), Mahindra & Mahindra (M&M), Bajaj Auto, Cochin Shipyard, Mazagon Dock Shipbuilders
Avinash Gorakshkar, a SEBI-registered fundamental equity analyst, expects increased demand for small-cap and mid-cap stocks following the strong Q2 GDP data.
Factors to Consider
While the Q2 GDP data is undoubtedly positive, investors should remain cautious and consider various factors that could influence market performance. The full impact of US tariffs and the sustainability of demand after the festive season are key uncertainties. Monitoring RBI policy cues, inflation trends, and corporate earnings upgrades will also be crucial in the coming months.
Overall Outlook
India's Q2 GDP growth of 8.2% reinforces the strength of its economic engine and sets a positive tone for markets and investors. The expected gap-up opening on Monday reflects the market's optimism, driven by strong manufacturing and consumption growth. While some analysts suggest the 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.
