The Sensex rose 1,436 points to close at 79,944, and the Nifty rose 446 points to 24,189, as the market benchmark indices maintained their upward trajectory for the second consecutive day.
Indian stock market: The Sensex increased 1,436 points to close at 79,944 and the Nifty increased 446 points to 24,189, as the major benchmark indices maintained their upward trend for the second consecutive day. Strong results in the IT and automotive industries drove a nearly 2% boost in both indices.During the day, the Nifty moved above its 20-day and 50-day moving averages, regaining significant technical levels. With the exception of Nifty Media, all sector indices ended the day higher, with Nifty Auto leading the way with a climb of about 4%.
Maruti Suzuki had its largest one-day advance since July 2024, while Eicher Motors hit an all-time high, increasing by nearly 9%. Thanks to a positive outlook from brokers, the Bajaj pair also enjoyed increases of around 7% each.
On the first trading session of the new year, the domestic benchmark index, the Nifty, opened flat. The index showed buying interest after a brief decline and ended the day higher at 23,743. According to Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd. (A Pantomath Group Company), the overall market, particularly the Nifty Smallcap 100, outperformed the Nifty and ended the day higher with gains of about 1%.
The following five major variables contributed to Thursday's spike in frontline indices:
After a year-end selloff, US and European market futures jumped as traders returned from their New Year's Day vacation. Following a time in which investors decreased their exposure to risky assets in the last days of 2024, Euro Stoxx 50 and Nasdaq 100 futures both increased by more than 0.5% during Asian trade. After falling for four days in a row until Tuesday, technology stocks may be the main driver of the rebound.
Collection of GST
A rebound in consumption activity was indicated by the December GST collection, which rose 7.3% year over year to ₹1.77 lakh crore. According to experts, this increase indicates that the economy is gaining speed, which could increase investor confidence.
"A recovery in economic growth is not indicated by the leading indicators that are currently available.The slowdown is still ongoing, as evidenced by the 2.97 percent MoM drop in December GST receipts, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Q3 earnings reports
On the first trading session of the new year, the domestic benchmark index, the Nifty, opened flat. The index showed buying interest after a brief decline and ended the day higher at 23,743. According to Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd. (A Pantomath Group Company), the overall market, particularly the Nifty Smallcap 100, outperformed the Nifty and ended the day higher with gains of about 1%.
The following five major variables contributed to Thursday's spike in frontline indices:
International markets
After a year-end selloff, US and European market futures jumped as traders returned from their New Year's Day vacation. Following a time in which investors decreased their exposure to risky assets in the last days of 2024, Euro Stoxx 50 and Nasdaq 100 futures both increased by more than 0.5% during Asian trade. After falling for four days in a row until Tuesday, technology stocks may be the main driver of the rebound.
Collection of GST
A rebound in consumption activity was indicated by the December GST collection, which rose 7.3% year over year to ₹1.77 lakh crore. According to experts, this increase indicates that the economy is gaining speed, which could increase investor confidence.
"A recovery in economic growth is not indicated by the leading indicators that are currently available.The slowdown is still ongoing, as evidenced by the 2.97 percent MoM drop in December GST receipts, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Q3 earnings reports
Expectations for Q3 profits have been raised by positive third-quarter business updates from important industries, such as finance and the automotive sector. Prominent corporations including CSB Bank, Mahindra & Mahindra, and Maruti Suzuki have seen positive patterns, offering hope.
"It is unlikely that Q3 corporate results would show a recovery. Investors must therefore concentrate on industries like IT, pharmaceuticals, and, to a lesser extent, finance that will outperform the recession. Luxury spending on travel, hotels, and jewelry is also anticipated to do well, according to Vijayakumar.
IT Industry
The IT industry, which played a significant role in the market rise, experienced a 1% boost in its index on January 2. Due to consistent demand and the recent currency depreciation, CLSA and Citi both predict higher revenue growth for IT companies in the December quarter.
Trends in Technology
The rally was strengthened when the Nifty rose over its 200-day moving average, a crucial technical indicator. After reaching 23770, a consolidation is anticipated. While a direct gain above 23850 might cause a move to 24025, but not much higher, a collapse is less expected. As volatility remains the main theme, we have not yet seen any indication of momentum," stated Anand James, Chief Market Strategist at Geojit Financial Services.
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