Bull Party on D-Street: Sensex Rockets 1,400 Points to Near 80K; Nifty Soars Past 24,150 as IT and Auto Lead the Charge
The Indian stock market started 2025 with a bang as the Sensex and Nifty logged their biggest single-day gains in over a month. Auto and IT stocks emerged as the driving force behind this impressive rally, fueled by robust December auto sales and a positive outlook for the IT sector.
The Sensex surged 1,436.30 points (1.83%) to close at 79,943.71, while the Nifty 50 climbed 445.75 points (1.88%) to end at 24,188.65. The broader market joined the party, with the midcap index up 1.2% and the smallcap index gaining 0.6%.
Key Drivers of the Market Surge
1. Auto Sector’s Stellar Performance
Auto stocks were on fire after December sales exceeded expectations. Heavyweights like Eicher Motors, Bajaj Auto, Hero MotoCorp, M&M, Maruti Suzuki, and Tata Motors soared up to 8%.
Nifty Auto Index rose nearly 4%, marking its best single-day performance in six months.
Eicher Motors led the pack, rallying 9% on a 25% YoY jump in sales to 79,466 units, with exports skyrocketing 90%.
M&M climbed 4%, supported by strong tractor sales (+22% YoY) and new UV model success.
2. IT Sector’s Tailwinds
The Nifty IT Index gained over 2%, buoyed by bullish commentary from CLSA and Citi. Analysts anticipate robust Q3 earnings, driven by:
Stable demand post-US elections.
Improved client sentiment.
Rupee depreciation boosting dollar-denominated earnings.
3. Positive Sentiment in Banking and Financials
The Nifty PSU Bank Index rose nearly 1%, led by SBI, Bank of India, and Bank of Baroda, extending a three-session winning streak.
Bajaj Finserv jumped 8% after Citi placed the stock on a ’90-day catalyst watch’, citing strong AUM growth and stable credit costs.
Market Experts Weigh In
Narendra Solanki, Head of Fundamental Research at Anand Rathi, commented, “The strong December auto sales reaffirm the economy’s gradual recovery. With Nifty nearly 9% off its peak, this is a golden opportunity to accumulate quality stocks for medium to long-term growth.”
Anand James, Chief Market Strategist at Geojit Financial Services, added, “After achieving 23,770, the market might consolidate. While a collapse is unlikely, breaking above 23,850 could trigger a move towards 24,025. Volatility remains the dominant theme.”
Stock-Specific Highlights
Eicher Motors: Top gainer on Nifty (+9%) after stellar domestic and export sales.
Bajaj Finserv: Gained 8% on optimistic growth forecasts.
M&M: Up 4% on strong volume momentum and robust tractor sales.
On the downside, only Sun Pharma and Britannia Industries ended in the red.
Market Outlook
The rally has added a massive ₹6.11 lakh crore in market capitalization. With IT and auto sectors leading, the focus now shifts to individual stock opportunities in the midcap and smallcap space, as valuations remain attractive despite historical highs.
Disclaimer: The views mentioned are for informational purposes and should not be considered financial advice.
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