After closing in the red on the last day of 2024, benchmark indices started the new year on a positive note. On Wednesday, the Sensex hit a high of 78,756.49, up 617.48 points or 0.79%. However, it pared some gains to end the day at 78,507.41, up 368.40 points or 0.47%. The Nifty soared by 98.10 points or 0.41% to close at 23,742.90. The indices remained in the positive territory for most part of the trading session.
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However, foreign portfolio investors (FPIs) continued to be on a selling spree. According to provisional data from exchanges, FPIs sold equities worth Rs 1,782.71 crore while domestic institutional investor (DIIs) net bought shares worth Rs 1,690.37 crore.
Wednesday’s surge was mostly powered by auto, capital goods, and industrials shares. Strong sales numbers for December generated investor interest in auto stocks. Among the top five Nifty gainers, three were from the auto sector. Maruti Suzuki, with a 3.26% jump, emerged as the top Nifty gainer.
“The market started on a positive note on the first day of 2025. The recovery was broad-based, while the sustainability of the trend will depend on the earnings growth in Q3, where expectations are positive on a quarter-on-quarter basis,” said Vinod Nair, head of research at Geojit Financial Services.
An uptick in core sector data and the prospect of increased government capital expenditure in the remainder of the fiscal boosted sectors such as capital goods, industrials, auto, and power, Nair added.
Realty and metal were the only losing sectors among the BSE indices. While realty declined by 1.13%, metals dipped marginally by 0.11%. Tata Steel was the top Sensex loser, falling 0.98%.
The overall market breadth was positive, with 2,743 gainers compared to 1,240 losers.
The broader indices outperformed the benchmarks, with the BSE Midcap rising by 0.50% and the BSE Smallcap increasing by 1.03%.
Investors’ wealth surged by Rs 2.44 lakh crore to Rs 444.43 lakh crore during the session.
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