Finance
By: Shree1news, 04 JAN 2021
The markets touched new highs in early trade on Monday, propelled by positive macro indicators and vaccine progress in India. The Sensex hit 48,000-mark for first time ever. At 9.48 am, the BSE Sensex was at 48,093.77, up 224.79 points or 0.47%. The Nifty was at 14,096.20, up 77.70 points or 0.55%.
“Positive economic data such as all-time record goods and services tax (GST) collections and impressive auto numbers, particularly in crucial segments similar to heavy commercial vehicles (HCVs) and medium commercial vehicles (MCVs) in December augur nicely for the markets. Low-interest charge regime within the developed world and the declining dollar are positives for capital inflows into emerging markets such as India. The risk is something triggering capital outflows which might cause a sharp correction in markets,” said V.K. Vijayakumar, chief investment strategist, Geojit Financial Services.
Record gross goods and services taxes (GST) collections in December, suggest continued recovery in financial activity and the gradual return to normalcy. Gross GST collections touched Rs1.15 trillion last month, the highest-ever for the reason that implementation of the new tax regime, in accordance with the Union finance ministry.
In December, passenger and commercial vehicles wholesales have been above estimates, whereas two-wheeler and tractor wholesales have been in line.
“With pent-up demand largely fulfilled, it could be critical for demand to sustain in 4QFY21 and beyond, considering the expected price hikes as well as opening up of public transport in many parts of the globe. Current valuations suggest restoration is likely to maintain, leaving restricted safety margin for any negative surprises,” mentioned Motilal Oswal Monetary Providers Ltd.
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