Equity markets kicked off 2025 on an optimistic note, with the benchmark indices closing higher led by strong gains in auto stocks and capital goods sectors. The BSE Sensex ended 368.40 points or 0.47 per cent higher at 78,507.41, while the NSE Nifty50 gained 98.10 points or 0.41 per cent to close at 23,742.90.

Market breadth remained distinctly positive with 2,747 stocks advancing compared to 1,237 declines on the BSE, indicating broad-based buying interest. The session also saw 153 stocks hitting their 52-week highs, while 37 touched their 52-week lows.

Auto stocks emerged as the top performers, with Maruti Suzuki leading the gainers’ pack, surging 3.01 per cent, followed by Mahindra & Mahindra which rose 2.36 per cent. Infrastructure major Larsen & Toubro advanced 1.73 per cent, while Bajaj Finance and Tata Motors gained 1.71 per cent and 1.31 per cent respectively.

On the flipside, metal and pharmaceutical stocks faced selling pressure. Hindalco Industries was the top loser, declining 1.40 per cent, followed by Dr. Reddy’s Laboratories which fell 1.12 per cent. Adani Ports shed 1.04 per cent, while ONGC and Tata Steel dropped 0.98 per cent and 0.85 per cent respectively.

The broader markets also participated in the upward momentum, with the Nifty Next 50 gaining 259.60 points or 0.38 per cent to close at 68,247.95. The Nifty Midcap Select index added 27.45 points or 0.21 per cent to end at 12,934.75.

Banking and financial services stocks contributed to the market’s positive performance, with the Nifty Bank index rising 200.40 points or 0.39 per cent to 51,060.60, while the Nifty Financial Services index gained 107.15 points or 0.46 per cent to close at 23,619.95.

“The recovery was broad-based, while the sustainability of the trend will depend on the earnings growth in Q3, where the expectation is positive on a QoQ basis,” said Vinod Nair, Head of Research at Geojit Financial Services. He added that an uptick in core sector data and prospects of increased government capex spending aided sectors like capital goods, industrials, auto, and power.

• Also read: Share Market Highlights 1st January 2025: Sensex rises 368.40 points to settle at 78,507.41; Nifty climbs 98.10 points to 23,742.90

Commenting on the technical outlook, Shrikant Chouhan, Head of Equity Research at Kotak Securities, said, “After a short-term correction, the index has formed a reversal formation, which is largely positive. For traders, 23,550/78000 would act as a key support zone. Above this level, the market could move up to 23,900–24,000/79000-79200.”

Ajit Mishra, SVP Research at Religare Broking Ltd, noted that the markets have entered their second week of consolidation, with current indicators suggesting this trend is likely to persist. “We continue to advocate a stock-specific strategy, focusing on counters exhibiting relatively stronger momentum. Besides pharma and healthcare, selective opportunities are emerging in the FMCG and energy sectors,” he advised.

The session witnessed active trading with 4,070 stocks being traded on the BSE. Additionally, 375 stocks hit their upper circuit limits while 207 stocks touched their lower circuits, reflecting significant momentum in select counters.