Mumbai (Maharashtra) [India], January 2 : The Indian stock market ended on a high note on Thursday, with both benchmark indices registering significant gains.
The Sensex soared 1,436.30 points to close at 79,943.71, while the Nifty jumped 445.75 points to end at 24,188.65. Among the Nifty 50 companies, 48 advanced, while only two declined, reflecting a robust market sentiment.
Top gainers in the Nifty included Eicher Motors, Bajaj Finserv, Bajaj Finance, Maruti, and Shriram Finance. Meanwhile, Sun Pharma and Britannia closed in the red.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on the broader economic picture, noting the absence of indicators suggesting a pickup in growth.
"Leading indicators available so far do not indicate a pick up in economic growth. GST collections for December have declined 2.97 per cent MoM indicating a continuation of the slowdown. Therefore, Q3 corporate earnings are unlikely to register a rebound. This means investors have to focus on segments which will buck the slowdown like IT, pharma and to some extent financials. Luxury consumption like hotels, jewellery and aviation also are likely to post good results," he said.
"FIIs are likely to continue with their selling strategy since the dollar remains strong and the US bond yields are attractive enough for FIIs to ignore emerging markets in the near-term. While DII buying can support the market at lower levels, that is not sufficient to take the market higher. For higher market levels we will have to wait for indications of growth and earnings recovery," he added.
VLA Ambala, SEBI-registered research analyst and co-founder of Stock Market Today, emphasized the importance of medium-term strategies for investors.
"The 200-day and 50-day EMAs provide a strong buying opportunity for medium-term investors in ETFs and those following the index for investment decisions. Today, significant buying was observed in the benchmark index, with Nifty rising by 2 per cent in intraday. On the other hand, mid-cap stocks underperformed, gaining nearly 1 per cent. However, it is still an ideal time to accumulate value stocks in companies with strong order books for the coming quarters," she said.
Ambala also highlighted a critical policy concern for the electronics sector, with handset and gadget manufacturers seeking simplification of the import tax structure in the upcoming Union Budget.
While the market's robust performance on Thursday indicates strong investor confidence, underlying economic challenges and global factors could limit upside potential.
Analysts recommend focusing on sectors resilient to economic slowdowns and value opportunities in companies with strong fundamentals.
Investors will also be closely watching policy announcements in the Union Budget 2025-26 for cues on growth and competitiveness across industries.
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