Closing Bell: Market Rally Continue For The 2nd Straight Day, Sensex & Nifty Rise Nearly 2% Each

The Indian stock market extended its gains for the second consecutive session on Thursday, buoyed by robust buying across sectors, particularly in IT and auto stocks. The benchmark indices surged, with the Sensex climbing 1,436 points to close at 79,944 and the Nifty 50 rallying 446 points to settle at 24,189. The Nifty also reclaimed the 24,200 mark intra-day, breaching key technical levels like the 20-day and 50-day moving averages.

The rally was broad-based, with all sectoral indices, except Nifty Media, ending in the green. Notably, the Nifty Auto index jumped nearly 4%, while the Midcap index rose 657 points to 58,108. Nifty Bank also gained 545 points, closing at 51,605.5.

Top gainers included Bajaj Finance, Bajaj Finserv, Kotak Mahindra Bank, Infosys, HCL Technologies, Tech Mahindra, Tata Consultancy Services (TCS), and Mahindra & Mahindra (M&M). Auto stocks like Maruti Suzuki and Eicher Motors saw exceptional demand, with Eicher hitting a record high, up nearly 9%.

Key Drivers Behind the Rally
Global Cues
Optimism in global markets provided a positive backdrop for Indian equities. US and European stock futures rebounded following a year-end selloff, with Nasdaq 100 and Euro Stoxx 50 futures rising more than 0.5%. The recovery in global tech stocks set the tone for gains in Indian IT heavyweights.

Strong GST Collections
December's GST collection surged 7.3% year-on-year to Rs 1.77 lakh crore, reflecting recovering consumption activities. Analysts see this as a sign of strengthening economic momentum.

Q3 Earnings
Positive updates from key sectors like automotive and financials have set an upbeat tone for the upcoming third-quarter earnings season. Notable performers such as Maruti Suzuki, Mahindra & Mahindra, and CSB Bank reported encouraging trends.

IT Sector Strength
IT stocks were a significant contributor to the rally, with the sector's index rising 1% on the day. Brokerage firms CLSA and Citi anticipate robust revenue growth in the December quarter, driven by sustained demand and the rupee's depreciation. Heavyweights like Infosys, HCL Technologies, and Tech Mahindra led the charge.

Auto Sector Surge
The auto sector stood out as a top performer, with strong December sales data driving investor interest. Eicher Motors rallied nearly 9%, achieving a record high, while Maruti Suzuki experienced its largest single-day surge since July 2024. Positive brokerage commentary also lifted Bajaj Finance and Bajaj Finserv, which rose nearly 7% each.

Force Motors jumped 10% after securing a significant order for ambulances. Info Edge gained nearly 2%, buoyed by a 9% year-on-year and month-on-month increase in the Naukri Job Index for December. PNB and CSB Bank posted nearly 3% gains on the back of strong Q3 updates.

Adani Green Energy ended flat after an initial surge driven by supportive comments from the Andhra Pradesh Chief Minister. Petronet LNG fell nearly 6% following concerns raised in a PNGRB report about optimizing LNG supplies.

The market breadth was firmly positive, with the advance-decline ratio at 2:1, indicating robust buying interest. The Nifty's ability to cross its 20-day and 50-day moving averages underscores a supportive technical setup.