Nifty 50 jumped 0.9% to 22,150 after the Union Finance Minister released the first‑quarter GDP figure for FY27, which clocked a 7.8% YoY rise—well above the 6.5% consensus forecast. According to the RBI’s latest Economic Survey, CPI hit 4.82% in August, up 0.22 points from July but still below the 4.6% target range.
The current‑account deficit narrowed to 0.5% of GDP, a 0.2‑point improvement over the prior quarter, and banks’ gross NPAs fell to 0.12% of total loans, the lowest in two decades. The IMF Fiscal Monitor, released in April 2026, projected global public debt to reach 100% of GDP by 2029, yet India’s fiscal deficit remains at 4.5% of GDP, comfortably below the 6% threshold.
Fiscal stimulus for FY27 is set at ₹12.22 lakh crore, nearly matching the ₹12.39 lakh crore spent between FY2004‑05 and FY2013‑14. Infrastructure gains—61% expansion of national highways, a 60% boost in port cargo capacity, and 36,429 km of new railway track—are expected to lift the manufacturing index by 2.5% YoY, analysts say. The RBI’s price‑stabilisation fund has maintained inflation buffers, keeping headline inflation within the 4–6% band.
Looking ahead, the government will present its 2027 budget on May 28, with a focus on capital‑expenditure cutbacks to 1.5% of GDP and a projected 4.2% fiscal deficit for FY28. Market participants are pricing in a 1.2% GDP growth for Q2 FY27, while the Reserve Bank of India is likely to keep policy rates unchanged until Q3, given the stable inflation trajectory.