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Below the Views on Morning Market 02nd January 2026 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

The impressive 25.8 % YoY increase in passenger vehicles sales in December bodes well for the auto industry. More importantly, this data confirms the growth momentum in the economy. It has to be watched whether this growth sustains, albeit at a slower pace, going forward. It is hugely important that the growth momentum in the economy sustains, because that alone can ensure the much needed  earnings growth that the market needs to remain resilient and gradually move up. 

The positive news about the auto industry is largely in the price. A sector that lagged last year was the consumer durables industry, which has the potential to catch up, going forward. The beneficial impact of the interest rate cuts and GST cuts are yet to reflect in the demand for consumer durables. In the short-term, this is one segment that has good prospects.

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