The Indian stock market started 2025 on a positive note, with benchmark indices closing higher after a rally led by the auto sector. The S&P BSE Sensex rose by 368.40 points to close at 78,507.41, while the NSE Nifty50 gained 98.10 points, ending at 23,742.90.
The rally was driven by strong performances across multiple sectors, with the auto sector leading the charge due to robust sales figures reported by major automakers for December 2024. This boosted investor confidence, propelling stocks like Maruti Suzuki India, which surged 3.01%, and Mahindra & Mahindra, which rose 2.36%. Other notable gainers included Larsen & Toubro (+1.73%), Bajaj Finance (+1.71%), and Tata Motors (+1.31%).
Market sentiment was further supported by an uptick in core sector data and the anticipation of increased government capital expenditure in the remaining fiscal period. Broad-based buying across sectors helped sustain the positive momentum.
Sectoral performance was largely favorable, with Nifty Auto leading gains, up 1.34%, followed by Nifty Media (+0.81%) and Nifty Consumer Durables (+0.77%). Financial indices, such as Nifty Financial Services Ex-Bank (+0.77%) and Nifty Private Bank (+0.46%), also saw notable advances. Gains extended to other sectors, including Nifty FMCG (+0.38%), Nifty Oil & Gas (+0.26%), and Nifty Pharma (+0.20%).
On the downside, only a few sectors faced declines. Nifty Realty dropped 1.11%, and Nifty Metal slipped by 0.12%, reflecting some profit bookings in these areas. Among individual losers, Hindustan Aluminium Company Limited fell 1.40%, followed by Dr. Reddy's Laboratories (-1.12%), Adani Ports (-1.04%), and ONGC (-0.98%).
Vinod Nair, Head of Research at Geojit Financial Services, highlighted that the market's recovery was broad-based. However, he noted that the sustainability of this trend would depend on Q3 earnings growth, which is anticipated to show positive quarter-on-quarter results.
Investors remain optimistic as the market demonstrates resilience, buoyed by sectoral strength and positive macroeconomic indicators, setting an encouraging tone for the new year.
