New Delhi, Nov. 27 -- India's GDP growth surprised many during the first quarter of the financial year, coming at 7.8%- a five-quarter high. The second quarter prints may also come on a strong note, with GDP growing in the range of 7% to 8%, above RBI's projection of 7% for Q2FY26. However, it may not be able to boost market sentiment as nominal GDP growth, economic expansion before adjusting for inflation, may have slowed further.

Experts say strong government spending, a favourable base effect and subdued deflator growth could act as statistical growth drivers for the second quarter GDP numbers. Moreover, the impact of 50% US tariffs on Indian goods did not fully materialise in the quarter, as front-loading of exports continued.

Howev...