India equity benchmarks scale record highs on robust economic growth

By Bharath Rajeswaran and Vivek Kumar MDec 1 - India's equity benchmarks hit record highs on Monday as a stronger-than-expected economic growth in the quarter through September boosted investor sentiment.The benchmark Nifty rose 0.31% to 26,284.40 and Sensex gained 0.35% to 86,008.46, as of 10:14 a.m. IST, after rising about 0.5% to all-time highs earlier in the session.Asia's third-largest economy grew 8.2% in July-September, its fastest pace in 18 months, lifted by robust consumer spending and front-loading of production ahead of local festivals and punitive U.S. tariffs, data showed on Friday."Strong growth data has buoyed investors' confidence, helping markets hit record highs," said Simran Jeet Singh Bhatia, senior research analyst of equity at Almondz Group.Cooling valuations, expectations of an earnings recovery, and favourable fiscal and monetary policies had boosted the blue-chips to all-time peaks last week.On Monday, 12 of the 16 major sectors advanced while the broader small-caps and mid-caps gained 0.6% and 0.3%, respectively.Investors await the Reserve Bank of India's rate decision on December 5. Strong growth has increased the likelihood of a rate pause, according to analysts. A Reuters poll conducted before the growth data had projected a 25-basis-point rate cut.Among stocks, Lenskart Solutions rose 2.5% after reporting higher quarterly profit. Jefferies said the results signal the start of the eyewear company's growth compounding, citing strong store potential and measured global expansion.Fintech firm Paytm gained 3%, taking its four-session rise to 10%. Brokerages such as Goldman Sachs and ICICI Securities have raised their price targets on the shares and the banking regulator has permitted it to operate as an online payment aggregator.Cigarette makers ITC and Godfrey Phillips fell about 1% after media reports said the government will introduce a bill to levy an excise duty on tobacco and tobacco products to replace the GST compensation cess.This article was generated from an automated news agency feed without modifications to text.