Sensex soars over 1,400 points as IT, auto & financial stocks drive gains
Indian benchmark indices rallied sharply today, with the BSE Sensex climbing over 1,400 points to 79,943.71 and the Nifty50 advancing by 445 points to 24,188.65, marking nearly 2 per cent gain after consolidating for around two weeks. With this, the benchmark equity indices ended in the green for the second consecutive session.
Highlighting the reasons behind rally, Vishnu Kant Upadhyay, AVP - Research and Advisory at Master Capital Services said the recent fall from record highs had made many stocks more affordable and positive sentiment ahead of the Union Budget along with other market updates, encouraged investors to re-enter the market.
The expectation of improved revenue growth for IT companies in the December quarter is supported by stable demand commentary from management and the recent depreciation of the rupee. Also, strong business updates from the automotive and financial services sector have heightened expectations for earnings in the third quarter which led to a rise in related stocks.
Further, in December, India’s Goods and Services Tax (GST) collection rose by an impressive 7.3 per cent year-on-year, totalling Rs 1.77 lakh crore, which increases the likelihood of a rebound in consumption activities, signalling positive economic momentum.
According to Bajaj Broking Research team, the rally was powered by strong performances across the auto, IT and financial sectors. December auto sales provided a boost, with stocks like Eicher Motors surging more than 8.5 per cent and Maruti Suzuki gaining 5.5 per cent.
Also, the technology sector gained nearly 2 per cent, supported by optimistic revenue projections for the December quarter. Additionally, a 7.3 per cent year-on-year rise in December GST collections to Rs 1.77 lakh crore signalled a recovery in consumption activity, further lifting market sentiment. The improving economic momentum, coupled with robust auto numbers and business update from major players like Maruti Suzuki, Mahindra & Mahindra and CSB Bank has bolstered expectations for strong Q3 earnings, driving today’s market optimism.
Experts were of the view that a decisive breakout and close above this level could signal further gains, potentially propelling Sensex towards the 81,500 mark.
