Will market hit new high on Monday as Q2 GDP growth accelerates to 8.2%? Here's what analysts say

How will markets react to strong GDP numbers?

Indian economy grew at a six-quarter high of 8.2 percent in Q2 FY26, thus beating estimates, announced government on November 28. Analysts' responses on how stock markets may react when they reopen on Monday, however, remain varied.

The GDP numbers were released in the post-market hours of November 28 (Friday).

India's GDP rises to 8.2% in Q2:

Indian economy grew at a six-quarter high of 8.2 percent in the July-September quarter of the ongoing financial year 2026, as against the 7.8 percent rise in the previous quarter (Q1 FY26). This was helped by robust manufacturing and a buoyant services sector, especially financial, real estate and professional services.

The GDP data beat a recent Moneycontrol poll of economists, which had pegged Q2 growth at 7.3 percent, and was well above the Reserve Bank of India's 7 percent projection for the quarter. "The upside surprise in the Q2 GDP growth print was driven by services, even as the agriculture and industrial sectors largely reported prints along expected lines," said Aditi Nayar, chief economist, ICRA.

"India's Q2 FY26 GDP growth of 8.2% clearly reaffirms the economy’s strong underlying momentum despite global uncertainties. The sharp pickup in manufacturing at 9.1% and the continued resilience in financial and professional services at 10.2% highlight that India’s growth engines are broad-based and structurally improving. What stands out is that private consumption has strengthened to 7.9%, indicating healthier demand conditions. Overall, this print reinforces confidence that India remains firmly on a high-growth trajectory, supported by robust domestic fundamentals and sustained investment activity," said Mahendra Patil, Founder and Managing Partner, MP Financial Advisory Services LLP.

How will markets react?

Indian equity markets ended the session almost flat on November 28, after hitting fresh lifetime highs just a day ago. Sensex closed around 14 points lower (0.02 percent) at 85,706.67, while Nifty 50 fell around 13 points (0.05 percent) to end the session at 26,202.95.

Earlier yesterday, Nifty 50 jumped more than 100 points to its new record high level of 26,310, breaking its previous record of 26,277 which it had hit in September last year. Sensex, meanwhile, crossed the 86,000-mark for the first time ever.

Kranthi Bathini, Director of Equity strategy, WealthMills Securities remained positive on the possible market response to the strong GDP numbers. He noted that the data was sharply above the consensus estimate. According to the analyst, Nifty 50 will likely cross the key resistance level of 26,250 on Monday.

"Strong GDP numbers despite sustained FII outflows this year shows the resilience of the Indian economy, which will continue to support the markets," he added.

Anirudh Garg, Partner and Fund Manager, INVasset PMS, said that the immediate market reaction is likely to be constructive, as the data validates earnings resilience, supports valuation premiums, and strengthens the case for continued capital expenditure. "Stronger-than-expected GDP numbers reinforce the view that India's growth cycle is being driven by domestic engines rather than external momentum," he said.

Will RBI cut rates after strong GDP data?

However, the analyst advised some caution, stating that the market may not move in a straight line. This comes as the Reserve Bank of India (RBI) is set to hold its MPC meeting in December. While most experts anticipate a rate cut, Garg noted that a strong GDP print reduces pressure on monetary policy to accelerate easing. This “could temper aggressive bets in rate-sensitive segments”, he said.

“Overall, the growth data supports the medium-term equity narrative: corporate earnings remain backed by real activity rather than sentiment, and the investment cycle is expanding rather than peaking,” he concluded.

The MPC faces a challenging act at the December rate review, with the mix of a strong growth print and record low inflation, said Radhika Rao, Executive Director and Senior Economist at DBS Bank. “We expect an emphasis on forward looking growth guidance and high real rate buffer due to weak inflation, to justify a move to lower rates further,” she added.

Also read: Market at lifetime high but IT index down 19% from peak