Indian equity benchmarks gained in early trade on Thursday, led by auto and banking stocks, while December’s GST collection showed sustained momentum in tax revenues despite signs of economic slowdown.
The Sensex opened at 78,657.52, slightly higher than its previous close of 78,507.41, and has risen further to 78,788.53, gaining 281.12 points or 0.36 per cent. The Nifty opened at 23,783.00, compared to its previous close of 23,742.90, and is currently trading at 23,831.20, up by 88.30 points or 0.37 per cent at 9.45 am. The gains came despite mixed cues from Asian markets, with major indices in China, Hong Kong, and Japan trading lower.
Bajaj Finance led the gainers pack, surging 3.15 per cent, followed by Bajaj Finserv at 2.21 per cent. Oil & Natural Gas Corporation rose 1.60 per cent, while Kotak Mahindra Bank and Infosys gained 1.52 per cent and 1.43 per cent, respectively. On the flip side, Sun Pharmaceuticals declined 0.83 per cent, Britannia Industries fell 0.81 per cent, NTPC dropped 0.69 per cent, Adani Enterprises shed 0.55 per cent, and Tata Consumer Products lost 0.47 per cent.
The auto sector showed strength after companies reported robust December sales figures. “Better-than-expected December sales figures from M&M and Maruti are likely to boost market sentiment,” said Vikas Jain, Head of Research at Reliance Securities.
India’s GST collections for December reached ₹1.77 lakh crore, marking the tenth consecutive month above ₹1.7 lakh crore, with a 7.3 per cent year-on-year increase. However, Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted: “GST collections for December have declined 2.97 per cent month-on-month indicating continuation of the slowdown. Therefore, Q3 corporate earnings are unlikely to register a rebound.”
The market’s focus remains on the upcoming Union Budget, with Finance Minister Nirmala Sitharaman scheduled to hold pre-Budget meetings with the financial sector and capital market representatives today.
Insurance stocks could see increased activity after the Cabinet approved the continuation of the PM Fasal Bima Yojana with an allocation of ₹69,516 crore. Similarly, fertiliser stocks may benefit from the government’s extension of a one-time special package worth ₹3,850 crore.
Gold opened steady near $2,625 an ounce after recording its biggest annual gain since 2010, up 27 per cent in 2024. “The uncertainties around Donald Trump’s tariff policies, geopolitical risks, and central bank buying support the precious metal,” said Rahul Kalantri, VP Commodities at Mehta Equities.
In the oil markets, Brent crude gained 1 per cent to trade above $75 per barrel, reaching a two-month high after industry data showed a decline in US crude inventories.
Technically, the market shows mixed signals. “The Nifty has traded within a defined range of 23900 on the upside and 23500 on the downside over the past two weeks,” noted Sameet Chavan, Head Research at Angel One. The index faces significant resistance at the 200-day moving average near 23,870.
Foreign institutional investors (FIIs) may continue their selling strategy in the near term. “The dollar remains strong and US bond yields are attractive enough for FIIs to ignore emerging markets in the near-term,” Vijayakumar added, suggesting that domestic institutional buying might only provide support at lower levels rather than driving the market higher.
