The Indian stock market kicked off the new year on a positive note, with the headline indices Sensex and Nifty indices marking a surge during the second trading session of 2025.
As of 12:04 PM IST on January 2, 2025, the Sensex surged by 709.32 points, or 0.90 per cent, trading at 79,217.59, while the NSE Nifty rose to 23,956.60, up by 213.70 points, or 0.9 per cent.
Let’s take a look at the factors fueling this rally:
Auto sales data for December
With record December auto sales figures, the auto sector played a key role in the rally. The sector sold over 4.3 million vehicles in 2024, marking an increase over the previous year.
Apart from this, the strong demand of the festive season and stock replenishments at dealerships also improved factory dispatches by 10-12 per cent in December 2024.
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Furthermore, in today’s trading session, auto majors such as Maruti Suzuki (+4.36%) and Mahindra & Mahindra (+3.43%) posted a surge in stock performance after the auto sales in December 2024.
Quarterly earnings expectations
Another reason for the recent surge in the stock rally also reflects the growing optimism about the upcoming Q3 earnings season.
Companies are set to announce their October-December 2024 financial results, and with many expectations and anticipations among investors and analysts.
Expectation of capex spend in Budget 2025
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The upcoming Union Budget 2025-26, scheduled for February 1, can also be another major reason buoying the market sentiment such ad expectations of increased government capital expenditure (Capex) leading to potential economic growth and infrastructure development.
Market Opening and Intraday Highs
The Sensex opened the day at 78,657.52 and reached an intraday high of 79,263.26. Nearly all sectoral indices showed gains, with the BSE Auto Index leading the charge, rising by 1.23%.
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