Markets cheerful despite slump in GDP growth, Sensex up 7%: Economic Survey

The Indian stock market continues to be upbeat about the country's growth prospects, despite deceleration in GDP growth for the sixth consecutive quarter, the Economic Survey 2019-2020 said, adding that the BSE Sensex has increased 7 per cent till December 2019 over March.

"This may also reflect the growing perception of India becoming an attractive destination for investment in the backdrop of a decline in the growth of major economies of the world and continued easing of monetary policy by the US Fed," it said on Friday.

"Despite the deceleration in GDP growth for the sixth consecutive quarter, the stock market continues to be upbeat about the country's growth prospects," the Survey said.

The net FDI and net Foreign Portfolio Investment (FPI) in first eight months of 2019-20 stood at USD 24.4 billion and USD 12.6 billion respectively, more than the inflows received in the corresponding period of 2018-19, it added.

Benchmark indices Nifty50 and S&P BSE Sensex reached record highs during 2019-20 (up to January 16, 2020). The Sensex reached an all-time high closing of 41,952 on January 14, 2020, witnessing an increase of 7.9 per cent from 38,871 level on April 1, 2019.

Nifty-50 index reached an all-time high closing at 12,355 on January 16, 2020, the survey said.

"Change in composition of sensex over the years shows that pro-business policies give a level playing field, providing opportunities to all and keeping incumbents on their toes," Chief Economic Adviser Krishnamurthy Subramanian said in a tweet.