In a buoyant start to Thursday's trading session, Indian equity benchmark indices surged, propelled by robust investor sentiment, record-breaking GST collections in April and substantial foreign fund inflows.
The 30-share BSE Sensex spearheaded the rally, surging by 204.88 points to reach 74,687.66 in early trade. Similarly, the NSE Nifty climbed by 57.35 points, reaching 22,662.20, setting a positive tone for the day's trading activities.
Key gainers among the Sensex constituents included Power Grid, Mahindra & Mahindra, Asian Paints, Tata Steel, Sun Pharma, and HDFC Bank, reflecting broad-based optimism among investors.
However, Kotak Mahindra Bank, Maruti, Wipro, and Titan experienced marginal declines.
The surge in market enthusiasm was significantly fueled by the announcement from the finance ministry, revealing a remarkable 12.4% surge in Goods and Services Tax (GST) collections, soaring to an unprecedented high of Rs 2.10 lakh crore in April.
This surge was attributed to robust economic momentum and increased domestic transactions and imports.
"The domestic cues are strongly positive. The GST collection for April setting a record of Rs 2.1 trillion indicates a booming economy," remarked V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, echoing the widespread optimism among market participants.
The positive momentum in Indian equities mirrored trends in Asian markets, where Tokyo and Hong Kong recorded gains while Seoul and Shanghai saw marginal declines.
Meanwhile, Wall Street's performance on Wednesday was mixed.
Additionally, the global oil benchmark Brent crude registered an uptick of 0.53% to reach USD 83.88 a barrel, further underpinning market optimism.
Foreign Institutional Investors (FIIs) remained net buyers, injecting Rs 1,071.93 crore into the equity markets on Tuesday, as per exchange data.
"Positive factors include record-high GST revenue, FIIs and DIIs being net buyers, and WTI oil prices falling below USD 80 a barrel," observed Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., outlining the multiple drivers supporting the current market sentiment.
Notably, domestic equity markets remained closed on Wednesday on account of Maharashtra Day.
The previous trading session witnessed a modest retreat, with the BSE benchmark declining by 188.50 points and the NSE Nifty dipping by 38.55 points, ending a two-day winning streak.
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