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Despite losses in Asian markets, Indian benchmark equity indices rose sharply on Thursday; Know key reasons why Sensex, Nifty are rising
Bulls Roar On D-Street
Despite losses in Asian markets, Indian benchmark equity indices rose sharply on Thursday, driven by strong performances in financial, auto, and IT stocks, ahead of the upcoming quarterly earnings season.
The BSE Sensex surged over 1,500 points during intra-day. Meanwhile, the Nifty50 advanced over 450 points to reclaim the 24,200 mark.
The market capitalisation of all listed companies on BSE rose by Rs 5.58 lakh crore to Rs 450.01 lakh crore.
After scaling the day’s high of 80,032.87, the 30-share Sensex settled at 79,943.71, up 1436.30 points or 1.83 per cent from its previous close.
Similarly, the NSE Nifty50 ended at 24,188.65, up 445.75 points or 1.88 per cent. The index traded in the range of 24,226.70 to 23,751.55 on Thursday.
Why is the Stock Market Rising Today?
Strong December Auto Sales
Auto stocks were among the top performers, buoyed by strong sales figures for December, defying the usual seasonal slowdown.
Eicher Motors led the rally, climbing 7% after reporting a 25% year-on-year increase in Royal Enfield sales, with 79,466 units sold in December compared to 63,887 units last year. Maruti Suzuki also rose 4.5% after announcing a 30% increase in December sales, delivering 1,78,248 units, up from 1,37,551 units in December 2023. Mahindra & Mahindra and Ashok Leyland also saw gains of over 4%, driven by better-than-expected sales.
Bottom-Fishing Amid Market Correction
Recent market corrections have made high-quality stocks more affordable, attracting bargain hunters. The Nifty and Sensex both fell significantly from their record highs, which has prompted buying activity in stocks at lower price points. G Chokkalingam, Founder of Equinomics Research Pvt Ltd, noted that the market correction is fueling bargain buying in good-quality stocks at discounted prices.
Rise in IT Stocks
The IT sector gained nearly 2%, following positive projections from CLSA and Citi for revenue growth in the December quarter and throughout 2025. Major IT stocks such as Infosys, TCS, HCL Tech, and Tech Mahindra contributed significantly to the Sensex’s rally, adding over 300 points to the index.
Recovery in Banking and Financial Stocks
Banking and financial stocks made a strong comeback, with Bajaj Finserv and Bajaj Finance surging nearly 6% and 8%, respectively, contributing to the market’s rally. Other private lenders like HDFC Bank, Kotak Mahindra Bank, and IndusInd Bank also saw significant gains.
Expiry Day Buying
Over the past two weeks, the Nifty traded within a defined range, between 23,500 and 23,900, consolidating with small movements. A breakout above the upper range occurred on Thursday, fueled by buying activity on the weekly expiry day.
Optimism Ahead of Union Budget 2025
Optimism around the upcoming Union Budget 2025 is also boosting market sentiment. Gaurang Shah, Head Investment Strategist at Geojit Financial Services, believes the budget will be growth-oriented. Anchal Kansal, Senior Research Analyst at Green Portfolio PMS, sees a focus on public infrastructure, including highways, roads, and railways, which could boost sectors like IT and pharma, especially with a strengthened dollar.
Technical View
Jigar S Patel, Senior Manager at Anand Rathi Shares and Stock Brokers, noted that Nifty formed a bullish Bat pattern, indicating further upward potential. He suggested that 23,800 is a key support level, and a break above 24,200 could signal additional gains, potentially pushing Nifty towards 24,500.
Anand James, Chief Market Strategist at Geojit Financial Services, expects a period of consolidation following Nifty’s rise to 23,770, with a breakout above 23,850 potentially driving the index toward 24,025, though he emphasized that volatility is likely to remain the dominant theme.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
