Indian equity benchmarks opened higher on Friday, led by strong performance in auto stocks, as markets showed resilience despite mixed global cues in the penultimate trading session of 2024. The BSE Sensex rose 505.16 points or 0.64 per cent to 78,977.64, while the NSE Nifty gained 168.15 points or 0.71 per cent to reach 23,918.35 at 10.01 AM.

Auto manufacturers dominated the gainers’ list, with Bajaj Auto leading the pack, up 2.70 per cent, followed by Eicher Motors at 2.58 per cent, Tata Motors at 2.52 per cent, and Mahindra & Mahindra gaining 2.26 per cent. Bajaj Finance from the financial sector also showed strength, rising 2.09 per cent.

On the flip side, Adani Ports declined 0.17 per cent, while IT majors HCL Tech and TCS fell 0.11 per cent and 0.10 per cent respectively. FMCG giant ITC dropped 0.09 per cent, and Power Grid Corporation was down 0.06 per cent.

The market sentiment received a potential boost from reports that the government is considering reducing income tax for individuals earning up to ₹15 lakh annually in the upcoming February budget. “This move is expected to significantly boost economic growth by increasing consumption among urban India’s large middle class,” noted Vikas Jain, Head of Research at Reliance Securities.

However, technical analysts point to ongoing market indecision. “The last three candles continue to have both long upper and lower shadows with narrow real bodies, which means plenty of indecision is in play,” said Akshay Chinchalkar, Head of Research at Axis Securities, adding that “support sits between 23500 and 23640.”

The broader market context remains challenging, with Foreign Institutional Investors (FIIs) having sold ₹250,989 crores in FY25, and the rupee weakening to 85.26. “While positive catalysts such as lower interest rates, a strong economy, and improving earnings estimates drive optimism, concerns remain,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.

In sector-specific news, Gensol Engineering secured an EPC contract worth ₹897 crore from NTPC Renewable Energy for developing a 225 MW grid-connected solar PV project at GSECL Solar Park in Gujarat, highlighting ongoing developments in the renewable energy sector.

The market is particularly focused on five IPO listings scheduled for the day, including DAM Capital, Sanathan Textiles, Concord Enviro Systems, Transrail Lighting, and Mamata Machinery.

Global markets provided mixed cues, with U.S. stocks ending their previous session on a flat note. The latest U.S. jobs data showed recurring unemployment benefit applications rising to a three-year high, while initial claims decreased to 219,000 for the week ended December 21.

In commodity markets, gold held steady at $2,631 per ounce, while Brent crude slipped 1 per cent to $73 per barrel despite ongoing geopolitical tensions in the Middle East.

As 2024 draws to a close, the Nifty has gained 9.3 per cent year-to-date and is on track for its ninth consecutive year of gains. Investors are now looking ahead to the January earnings season for further market direction.