Consumption story pushing markets higher

Come what may markets continue their gravity-defying rally. It seems investors are adamant of using fireworks, albeit at D-Street.

As for the macroeconomic data, in the first full month after the implementation of GST, factory output data registered a healthy growth of 4 per cent in August on the back of festive season demand. Despite this infrastructure and construction goods remained a laggard, reflecting the difficulties faced by the overall economy.

However, stocks that represent India's consumption story were buzzing on the bourses on Friday. Investors are finding value in stocks like Havells, Britannia, TVS Motors, Dabur breached their 52-week high, while Bajaj Auto, Page Industries, Hindustan Lever, Maruti were active on the bourses.

Hopes of a revival in the housing sector and thereby rise in demand for housing finances seem to be pushing the stocks of Bank Nifty to new highs. HDFC Bank and Kotak Bank were trading at near their record 52-week high, while ICICI Bank and SBI were among top gainers on the index. As for the benchmark indices, bank stocks and telecom sector stocks like Bharati Airtel, Bharati Infratel and Tata Teleservices were charting new highs on the back of consolidation in the telecom industry.

Even in the face of a slow down and in absence of substantial government stimulus, for the short term, it seems that investors are taking comfort in the increase in domestic demand fueled by the festive season. Maybe it is market's way of wishing Happy Diwali!