Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, rallied strongly in trade on Thursday. While BSE Sensex was above 79,800, Nifty50 moved above 24,150. At 2:30 PM, BSE Sensex was trading at 79,826.82, up 1,319 points or 1.68%. Nifty50 was at 24,157.20, up 414 points or 1.74%.
Indian benchmark equity indices moved higher on Thursday, contrasting with losses in Asian markets. The surge was primarily driven by gains in financial, auto, and IT sectors as the quarterly earnings season approaches next week.
The total market capitalisation of BSE-listed companies increased by Rs 2.92 lakh crore, reaching Rs 447.35 lakh crore, according to an ET report.
The key factors behind today’s stock market rally are:
1) December Auto Sales Performance
Auto sector showed significant strength, backed by impressive December sales figures. Eicher Motors led with a 7% rise, reporting 79,466 Royal Enfield units sold in December, up 25% from the previous year’s 63,887 units.
Maruti Suzuki shares increased by 4.5% following a 30% yearly growth in December sales, with 1,78,248 units compared to 1,37,551 units last year. M&M and Ashok Leyland shares also rose over 4% on strong sales data.
2) IT Sector Growth
The IT sector index rose nearly 2% following positive forecasts from CLSA and Citi for December quarter revenue and 2025 outlook. Major IT companies contributed significantly to the Sensex gains.
3) Economic Outlook
Bernstein’s analysis indicates economic recovery within 1-2 quarters. They forecast a Nifty 50 target of 26,500, suggesting 12% potential returns, with a revised PE multiple of 19.5x.
4) Financial Sector Performance
Banking and financial stocks showed strong recovery. Bajaj Finserv and Bajaj Finance increased by approximately 6% and 8% respectively. Other private banks also contributed positively.
5) Expiry Day Trading
The Nifty broke out from its recent trading range of 23,900-23,500, showing significant buying activity during Thursday’s weekly expiry.
