Mumbai: The Indian stock market concluded on a positive note on Thursday, with both major indices experiencing substantial gains.
The Sensex surged by 1,436.30 points, finishing at 79,943.71, while the Nifty rose by 445.75 points to close at 24,188.65. Among the Nifty 50 constituents, 48 saw an increase, with only two experiencing a decline, indicating strong market confidence.
Leading the gains in the Nifty were Eicher Motors, Bajaj Finserv, Bajaj Finance, Maruti, and Shriram Finance. In contrast, Sun Pharma and Britannia ended the day lower.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, provided insights into the overall economic landscape, highlighting a lack of signs pointing to an increase in growth.
"Current leading indicators do not suggest an uptick in economic growth. December's GST collections fell by 2.97 percent month-on-month, signaling a continuation of the slowdown. Consequently, Q3 corporate earnings are unlikely to show a rebound. Investors should concentrate on sectors that may defy the slowdown, such as IT, pharmaceuticals, and, to a lesser extent, financials. Additionally, luxury sectors like hospitality, jewelry, and aviation are expected to perform well," he stated.
"Foreign Institutional Investors (FIIs) are likely to maintain their selling approach due to the strong dollar and attractive US bond yields, which may lead them to overlook emerging markets in the short term. While Domestic Institutional Investors (DIIs) can provide support at lower market levels, this alone may not be enough to drive the market higher. For significant upward movement, we will need to see signs of growth and a recovery in earnings," he concluded.
VLA Ambala, a SEBI-registered research analyst and co-founder of Stock Market Today, underscored the significance of medium-term strategies for investors.
"The 200-day and 50-day EMAs present a compelling buying opportunity for medium-term investors in ETFs and those making investment decisions based on index performance. Today, we witnessed substantial buying activity in the benchmark index, with Nifty increasing by 2 percent during intraday trading. Conversely, mid-cap stocks lagged, achieving nearly a 1 percent gain. Nevertheless, this remains an opportune moment to accumulate value stocks in companies with robust order books for the upcoming quarters," she stated.
Ambala also pointed out a pressing policy issue for the electronics sector, as handset and gadget manufacturers are advocating for a more streamlined import tax structure in the forthcoming Union Budget.
While the market's strong performance on Thursday reflects solid investor confidence, persistent economic challenges and global influences may constrain potential gains.
Analysts advise concentrating on sectors that are resilient to economic downturns and identifying value opportunities in companies with strong fundamentals.
Investors will be keenly observing policy announcements in the Union Budget 2025-26 for insights into growth and competitiveness across various industries.
