The beginning of the new year is proving to be great for investors. On Friday, the second trading day of the year, there was tremendous growth in the Indian stock market. On the back of strong global cues and buying in leading stocks, Nifty made a new all-time high, while Sensex closed strongly with a gain of 573 points. This rise has given further wings to the expectations of investors.
At the end of trading, Nifty rose 182 points to reach a record level of 26,328.55, while Sensex closed at 85,762.02 with a gain of 573.41 points. The market breadth of the market was also positive, where the number of rising stocks was more than the falling ones. Overall, there was a clear buying environment in the market.
Hindalco Industries, Coal India and Bharat Electronics were among the biggest gainers in the Nifty-50 pack, which saw a rise of up to 2 percent. On the other hand, ITC and Bajaj Auto remained under pressure and declined up to 4 percent. Despite this, buying in auto, metal and PSU stocks kept the market higher.
Reason for market boom
The biggest reason behind this rise in the market was the positive signals received from the global markets. In Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite and Hong Kong’s Hang Seng were seen trading in the green. Apart from this, strength was also seen in the US futures markets, which increased the confidence of investors.
Strong buying in large-cap stocks
Strong buying was seen in large-cap stocks. Reliance Industries rose nearly 1 percent for the second consecutive session. Market experts believe that December sales figures of auto companies and business updates of other sectors are indicating improvement in December quarter results, which supported the market.
Continuous buying of DII
Continuous buying by domestic institutional investors (DII) also strengthened the market. At the same time, the rupee strengthened by 6 paise to reach 89.92 against the dollar, which further strengthened the sentiment of investors. Buying in auto stocks also continued. The Nifty Auto index rose nearly 1 per cent on December sales data, marking the fourth consecutive session of gains for the sector.
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