The Indian stock market began Thursday’s trading session on a strong note, buoyed by a positive rally in Asian markets and significant buying interest in blue-chip banking stocks. Benchmark indices Sensex and Nifty climbed substantially in early trade, reflecting renewed investor optimism amid improving economic conditions.
The 30-share BSE Sensex surged 425.5 points, reaching 78,898.37 in early trading, while the broader NSE Nifty advanced 123.85 points to touch 23,851.50. Leading the charge were major players such as State Bank of India (SBI), Maruti Suzuki, Axis Bank, ICICI Bank, Mahindra & Mahindra, and Power Grid, which posted notable gains.
However, not all sectors shared the upward momentum. Companies such as Asian Paints, Tech Mahindra, Nestle, and Tata Consultancy Services underperformed, showing resistance to the market’s bullish trends.
Asian markets played a pivotal role in driving Thursday’s rally. Key indices in Seoul, Tokyo, and Shanghai traded in the green, creating a favourable backdrop for Indian markets. The positive momentum came on the heels of a brief holiday pause, as U.S. markets remained closed on Wednesday for Christmas.
In the commodity markets, the global oil benchmark Brent crude rose modestly by 0.41%, trading at $73.88 per barrel, signalling stability in energy prices amid global economic recovery efforts.
Recent data has painted a promising picture for the Indian economy. According to the Reserve Bank of India’s (RBI) bulletin released earlier this week, economic momentum, which had slowed in the September quarter, is on an upward trajectory. Strong festival-season activity and a robust revival in rural demand have contributed significantly to the recovery.
This upswing comes despite foreign institutional investors (FIIs) continuing to divest. Exchange data revealed that FIIs offloaded equities worth ₹2,454.21 crore on Tuesday, reflecting cautiousness amid global uncertainties.
The Indian markets had remained closed on Wednesday in observance of Christmas, offering investors a brief respite to reassess their strategies in light of the evolving macroeconomic landscape.
Among the 30 blue-chip stocks, banking and financial sector giants stood out as key gainers. State Bank of India, Axis Bank, and ICICI Bank saw robust buying interest, highlighting investor confidence in the sector’s resilience. Maruti Suzuki and Mahindra & Mahindra also recorded impressive gains, driven by optimism in the automobile sector, supported by rising rural incomes and sustained demand.
Conversely, IT and consumer goods faced headwinds. Companies like Tech Mahindra and Nestle witnessed muted performances, reflecting concerns about valuation pressures and sector-specific challenges.
The early rally followed a volatile session earlier this week. On Tuesday, the BSE Sensex oscillated between gains and losses before closing 67.30 points lower at 78,472.87. Similarly, the Nifty shed 25.80 points to end at 23,727.65, as investors weighed global and domestic factors.
Despite these fluctuations, Thursday’s positive start indicates growing investor confidence, underpinned by supportive global cues and improved domestic economic indicators.
Market analysts suggest that the rally in blue-chip stocks, particularly in banking and automobile sectors, underscores the broader recovery narrative of the Indian economy. As festive demand transitions into sustained consumer activity, the outlook for the market remains optimistic, although challenges like global economic uncertainties and FII outflows persist.
The renewed vigour in rural demand, coupled with favourable policy support, is expected to bolster sectors like banking, infrastructure, and automobiles. At the same time, global developments, including oil price movements and geopolitical trends, will play a crucial role in shaping the medium-term market trajectory.
Thursday’s surge in Sensex and Nifty is a testament to the resilience of the Indian markets and the economy’s recovery from earlier setbacks. With blue-chip stocks leading the charge and positive cues from Asian markets, investors can look forward to a cautiously optimistic trading environment as the year draws to a close.
