The Indian equity markets have shown resilience in the early trade on Thursday, with a positive momentum driven by auto and banking stocks. Despite signs of economic slowdown, December’s GST collection figures reveal sustained momentum in tax revenues, signaling some stability in the economy.
At the opening bell, the Sensex and Nifty both traded higher, with Bajaj Finance leading the gainers. Other notable gainers included Bajaj Finserv, Oil & Natural Gas Corporation, Kotak Mahindra Bank, and Infosys. On the other hand, Sun Pharmaceuticals, Britannia Industries, NTPC, Adani Enterprises, and Tata Consumer Products experienced declines.
The auto sector has shown strength following robust December sales figures from companies like M&M and Maruti, which are likely to boost market sentiment. However, market experts caution that the slowdown indicated by the month-on-month decline in GST collections could impact Q3 corporate earnings.
Investors are now eagerly awaiting the upcoming Union Budget, with Finance Minister Nirmala Sitharaman scheduled to hold pre-Budget meetings with financial sector and capital market representatives. Certain sectors like insurance and fertilizers could benefit from recent government approvals for schemes like the PM Fasal Bima Yojana and a special package for fertilizers.
In the global markets, gold prices remain steady near $2,625 an ounce, while Brent crude oil prices have surged above $75 per barrel on the back of a decline in US crude inventories.
Technically, the Nifty is trading within a defined range, with significant resistance at the 200-day moving average. Foreign institutional investors may continue their selling strategy due to the attractiveness of US bond yields.
Overall, while the Indian equity markets show mixed signals, there are certain sectors and factors that are likely to drive market movement in the near term. Stay tuned for more updates on this evolving situation.