Stock market indices Sensex and Nifty expected to open marginally higher, boosted by improved Industrial Production Index (IIP) growth.
Prime Minister Narendra Modi embarked on an official visit to Japan and China this week, aiming to strengthen strategic partnerships and expand economic and technological cooperation.
Meanwhile, the global markets showed a mixed performance. The Dow edged up 0.2%, and the tech-heavy Nasdaq Composite gained half a percent, while the S&P 500 added 0.3% to reach another new record closing high. However, the German DAX finished marginally lower, and the U.K.'s FTSE 100 shed 0.4%. European stocks ended mixed on Thursday, with the pan-European STOXX 600 slipping 0.2%.
The economic firm EY (Ernst & Young) predicted in their EY Economy Watch in August 2025 that India will become the world's second-largest economy by 2038 in terms of GDP based on purchasing power parity. This optimistic outlook comes amidst economic headwinds from heavy U.S. tariffs, as India's GDP is expected to reach $34.2 trillion despite these challenges.
India's growth story was further bolstered by the surge in industrial production. July saw a 3.5% year-over-year increase, with the growth primarily driven by a 5.4% expansion in the manufacturing sector and a 0.6% rebound in electricity output.
However, the U.S. tariffs took a toll on the Indian markets, as the benchmark indexes Sensex and Nifty fell around 0.9% each on Thursday. Foreign investors offloaded shares worth Rs 3,857 crore on a net basis on Thursday, while domestic institutional investors net bought shares to the tune of Rs 6,920 crore.
The rupee, however, showed a positive trend, rising by 6 paise to close at 87.63 against the greenback on Thursday.
Elsewhere, U.S. jobless claims fell to 229,000 last week, signaling low layoffs. This positive employment data, coupled with highly anticipated earnings news from AI darling Nvidia and a surprise rise in the second-quarter GDP estimate, propelled U.S. stocks higher overnight.
France's CAC 40 edged up by 0.2% after hefty losses earlier in the week on concerns over a deepening political and fiscal crisis. Persistent uncertainty over Chinese sales weighed on European stocks, with the Chinese market yet to fully recover from the ongoing trade tensions.
In a surprising turn of events, the second-quarter real GDP increased by 3.3% compared to the previously reported 3.0% surge. The growth was primarily due to upward revisions to investment and consumer spending.
In summary, the global markets and economies are navigating through a complex landscape, with positive developments in some regions offset by challenges in others. The outlook for India remains optimistic, with the country expected to become the world's second-largest economy by 2038 based on purchasing power parity.
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