The Indian stock market started Thursday’s trading session on a positive note, with key benchmarks Sensex and Nifty registering significant early gains, driven by buying in the IT and banking sectors.
The 30-share BSE benchmark Sensex climbed by 242.95 points, reaching 78,750.36 in early trade, while the NSE Nifty surged by 69.25 points to 23,812.15. A majority of the stocks in the blue-chip pack saw positive movement, with Bajaj Finance, Bajaj Finserv, Kotak Mahindra Bank, Infosys, HCL Tech, Tech Mahindra, Mahindra & Mahindra, and Tata Consultancy Services emerging as the biggest gainers in the session. These stocks saw robust buying interest as investors favored these frontline companies, reflecting confidence in their strong earnings potential and growth prospects.
The IT sector and banking stocks were the primary drivers of the rally. Companies like Infosys and TCS continued to attract buying interest due to strong demand in the global tech space, with investors betting on their continued growth in a rapidly digitalizing global economy. The banking sector also saw strength, with stocks like Bajaj Finserv and Kotak Mahindra Bank benefiting from favorable earnings prospects, strong loan growth, and improving asset quality.
However, not all stocks in the broader market shared in the optimism. NTPC, Sun Pharma, Asian Paints, and Adani Ports were among the laggards, reflecting a pullback in some sectors amid a broader positive market environment.
In other news, India's gross GST collections for December came in at ₹1.77 lakh crore, marking a 7.3% year-on-year increase. This figure comes despite a significant rise in both domestic and export refunds. The growth in GST collections indicates a resilient economic recovery, with a steady increase in tax receipts from both the manufacturing and service sectors. The data also highlights the positive impact of the government’s tax reforms and the economic activity across various sectors.
On the global front, Asian markets were trading lower, with Seoul, Shanghai, and Hong Kong showing declines. This was mainly driven by concerns over global economic conditions, inflationary pressures, and geopolitical risks. US markets were closed on Wednesday due to the New Year holiday, leading to a quiet session in global equities. As a result, investors in Indian markets are keeping an eye on global cues, especially from the US, which may affect market sentiment in the days ahead.
Overall, Thursday’s early market gains indicate investor optimism, particularly in key sectors like IT and banking. The strong GST collection data and the positive trend in the Sensex and Nifty suggest that the market is on a steady growth path, with cautious optimism ahead as it navigates the start of the New Year. Investors will closely monitor global market trends, corporate earnings reports, and economic data in the coming days to gauge the sustainability of this upward momentum.
