The equity benchmarks started the New Year strong with the Sensex climbing 327pts and the Nifty closing near the 18,200 mark on Monday. This was due to positive macroeconomic data as well as a firm trend for European equities.
BSE Sensex 30 shares rose 327.05 points, or 0.54 percent, to settle at 61.167.79. The NSE Nifty broader index rose 92.15 point or 0.51 percent to 18,197.45.
Tata Steel, which climbed 5.86 percent, was the largest gainer in the Sensex pack. Reliance Industries and Infosys followed, as did Mahindra & Mahindra and Tata Motors.
SBI, Tech Mahindra Sun Pharma, Asian Paints, Titan and Tech Mahindra were the worst offenders, with losses up to 1.47 percent.
Market breadth was strongly in favor of bulls with 22 advances and 8 declines.
According to V K Vijayakumar (Chair Investment Strategist, Geojit Financial Services), robust GST collections indicate the resilience of the economy.
In December 2022, the Goods and Services Tax (GST), collected 15% more than it did in December 2022. This indicates that there was an increase in manufacturing output and consumer demand as well as better compliance.
According to a monthly survey, India’s manufacturing sector activity climbed to a thirteen-month high in December. This was due to strong demand conditions and healthy inflows.
“Markets welcomed 2023 with a high spirit, despite the lack of global cues. Domestic equites were supported by strong macros and the expectation of healthy corporate earnings.
“We expect the market to remain stable with a positive bias in the months ahead of the December quarter results and the critical Union Budget in February. This should lead to sector-specific action in the market,” stated Siddhartha Khhemka, Head of Retail Research, Motilal Oswal Financial Services Ltd.
The BSE smallcap gauge grew 0.84 percent and the midcap index climbed 0.57 percent in the wider market.
Metal jumped 2.83 percent, while telecommunication rose 1.32 percentage, services (1.08 Percent), commodities (1.23 Percent), realty (0.99%), and industrials (0.76%).
