Nifty Hits Record 23,800: Sensex Soars Led by Auto & Bank Stocks | Market Rally News
On January 2, Indian stock markets witnessed a strong performance with the Nifty surpassing 23,800 and the Sensex climbing 252 points. Gains were fueled by robust performances in auto and banking stocks, with Kotak Mahindra Bank, Tata Motors, and Maruti Suzuki standing out as top gainers. However, NTPC and HDFC Bank struggled, recording losses. While foreign investors remained net sellers, domestic investors continued to support the market through consistent buying.
Market Highlights
- By mid-morning, the Sensex was up by 585 points (0.72%) at 79,104.41, while the Nifty surged 171.35 points (0.72%) to reach 23,915.25. The market breadth was positive, with 2,500 stocks advancing, 969 declining, and 130 remaining unchanged.
Auto and Banking Sectors Lead the Rally
- The auto sector saw significant activity following the release of December sales data. Stocks like Tata Motors, Mahindra & Mahindra, and Maruti Suzuki pushed the Nifty Auto Index into positive territory.
- Tata Motors: The company’s shares rose by 1%, driven by a 1% increase in total sales for December 2024, recording 76,599 units sold compared to 76,138 units in December 2023. While passenger vehicle sales (including EVs) grew, commercial vehicle sales dipped slightly.
Large Caps Active; Broader Markets Stable
- While large-cap stocks drove the day’s gains, mid-cap and small-cap indices showed limited movement. Experts remain optimistic about the broader market, particularly in sectors like pharmaceuticals, real estate, and hospitals. Aishwarya Dadhich, Founder and CIO of Fident Asset Management, commented, "Mid and small-cap stocks hold promising growth potential and may outperform large caps due to their strong earnings trajectory."
Foreign Investors Persist with Selling
- Data revealed that on January 1, 2025, foreign institutional investors (FIIs) solds Rs. 1,782 crore worth of equities, while domestic institutional investors (DIIs) offset some of the pressure with purchases worth Rs. 1,690 crore.
- Dadhich anticipates a return of FII interest by March or April if corporate earnings remain stable. However, concerns about the rupee's performance against the dollar and potential earnings disappointments could weigh on the markets in the short term.
Expert Analysis
- He also highlighted short-term support levels between 23,545 and 23,640, cautioning that a break below this range could lead to a drop toward 23,460.
- Akshay Chinchalkar, Head of Research at Axis Securities, noted, "While the Nifty has shown resilience, this period of low liquidity can lead to sharp price swings. If the current uptrend continues, resistance is expected between 23,876 and 23,970, coinciding with the 200-day moving average."
Winners and Losers
- Top Gainers: Kotak Mahindra Bank, Bajaj Finance, Tata Motors, Dr. Reddy’s, Shriram Finance, and Maruti Suzuki.
- Top Losers: NTPC, HDFC Bank, Hero MotoCorp, and TCS.
Sectoral Performance
- While auto and banking stocks shone, sectors like consumer durables, PSU banks, and metals struggled, closing in the red. On the other hand, FMCG and infrastructure indices registered modest gains of 0.5%.
Looking Ahead
The market’s future trajectory will depend on upcoming Q3 earnings reports and global economic signals. Analysts recommend that investors focus on long-term strategies and exercise caution amid current volatility.
