Sensex Nears 80K, Nifty Touches 24188

MUMBAI: The Indian equity markets experienced a robust rally for the second consecutive trading session of 2025, driven by a strong bullish sentiment. On Thursday, the benchmark S&P BSE Sensex closed at 79,943, marking an increase of 1,436 points or 1.83 percent. Meanwhile, the Nifty index rose by 445.75 points or 1.88 percent, finishing at 24,188. This surge resulted in a rise in the market capitalization of BSE-listed firms, which increased by Rs 6 lakh crore to reach Rs 450.44 lakh crore compared to the previous session's Rs 444.46 lakh crore.

The rally was notably supported by gains in key sectors like banking, IT, automotive, and metals. Despite some apprehensions about the currency market—where the rupee reached new lows against the dollar amid rising crude oil prices and sluggish growth—the positive performance prevailed. The Nifty index regained critical technical levels, exceeding both its 20-day and 50-day moving averages.

In terms of sector performance, all indices, except for Nifty Media, ended in positive territory, with Nifty Auto seeing a notable gain of 4 percent. The broader market also showed strength, with the Midcap Index climbing 657 points to close at 58,108 and Nifty Bank increasing by 545 points, finishing at 51,605.5.

As of late 2024, the rupee depreciated by 2.9 percent over the year, moving from Rs 83.23 to Rs 85.66 against the dollar at the end of December 2024.

Automobile stocks surged due to strong December sales, with Eicher Motors leading the way as the top gainer (up 8.55 percent). Other significant performers included Bajaj Finserv (up 7.84 percent), Bajaj Finance (up 6.32 percent), Maruti, Titan, Mahindra, Infosys, HCL Tech, Zomato, UltraTech Cement, and Kotak Mahindra Bank. However, Sun Pharma and Britannia were the only two stocks that suffered losses on the NSE.

In 2024, both the Sensex and Nifty posted modest annual returns, with gains of 8.9 percent and 9.6 percent respectively, compared to much higher returns of 20 percent in 2023.

Osho Krishnan, a Senior Analyst at Angel One, noted, "The benchmark index concluded the first weekly expiry of 2025 on a strong note, gaining nearly 2 percent to settle just shy of the 24,200 mark. Thursday proved to be pivotal for market participants, as the Nifty successfully overcame several key resistance levels. First, it tackled the 200-day Simple Moving Average (DSMA); next, it broke through the 20-day Exponential Moving Average (DEMA) and ultimately managed to close the bearish gap observed in the daily chart."

He added, "These achievements reflect the strength and dominance of bullish sentiment in the market, suggesting a potentially sustained upward trajectory in the near term. The recent developments may represent a turnaround in market sentiment toward a bullish outlook."

However, analysts have cautioned about potential risks ahead. Prashanth Tapse, Senior Vice President at Mehta Equities Ltd, warned that "any further increase in US Bond yields could exert pressure on domestic equities and trigger outflows of foreign funds."

Sensex, Nifty, Equities