Stock Market Update: The domestic stock market indices ended higher for the second consecutive day in 2025. Market sentiments were optimistic due to strong auto sales in December. The market sentiments were positive and traders remained confident throughout the day as a foreign brokerage firm issued a bullish outlook on Indian equities, and set a Nifty target of 26500 at the end of 2025.
The firm believes the Indian market has reacted to its bottom after the recent correction and anticipates limited downside potential for the Nifty index. It also said that as the elections now concluded, the focus is now shifting back to economic growth. The Q3 quarter is considered crucial for market performance.
Key Indices Performance
At close, the Sensex gained 1,436.30 points or 1.83 percent at 79,943.71, while the Nifty index jumped 445.75 points or 1.88 percent at 24,188.65, ending their best session since November 22, 2024. About 1608 shares advanced, while 791 shares declined on the NSE today.
The broader markets underperformed, as the Nifty Midcap index gained 1.14 percent while the Nifty Smallcap index was up only 0.64 percent at the close. Most sectoral indices ended higher, with the Auto, IT, and Financial sectors leading, while the media sector closed almost flat to the negative. The NSE’s volatility index “India VIX” declined 5.3% to 13.74 at the close.
The share prices of Infosys, Reliance, Bajaj Finance, Mahindra & Mahindra, and Maruti Suzuki. contributed the most in today’s market rally. The Sun Pharmaceutical Industries and Britannia Industries were the only Nifty stocks that declined today.
Economic News
The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) dropped to 56.4 in Dec 2024, reaching a 12-month low and reflecting a slower pace of improvement in operating conditions. This headline figure was marginally lower than November’s 56.5 but stayed above the long-term average of 54.1, indicating strong growth momentum.
Indo Farm Equipement IPO Update
The initial public offering (IPO) of Indo Farm Equipment was subscribed to 227.67 times. The public issue subscribed 101.79 times in the retail category, 242.4 times in QIB, and 501.75 times in the NII category by January 2, 2025, on the 3rd day. The GMP price is Rs 90 indicating strong listing gains
The IPO opened for bidding on 31 December 2024 and will close on 02 January 2024. The price band for the offering is set between ₹204 and ₹215 per share, with investors required to bid for a minimum of 69 equity shares and in multiples thereof. The listing day of Indo Farm Equipment IPO is 7th January 2025.
Market Outlook
The market sentiments have become Sideways Bullish. The next support for the Nifty index is around 23700 – 23800 and resistance is at 24350 levels. The action in the market remains stock-specific.
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