Indian equity indices kicked off the second day of trade on a subdued note, but with a positive bias. However, indices soon started trading higher, and the NSE Nifty 50 advanced 183 points, or 0.68%, to hit a new lifetime high of 26,322.15. The BSE Sensex surged 570 points, or 0.67%, to 85,745 in the afternoon trade.
The Bank Nifty opened 69 points or 0.12% higher at 59,780. Similarly, the small and mid-cap stocks opened in the green. The Nifty Midcap opened 112 points or 0.18% higher at 60,863.
The impressive 25.8 % YoY increase in passenger vehicle sales in December bodes well for the auto industry. More importantly, this data confirms the growth momentum in the economy. It has to be watched whether this growth sustains, albeit at a slower pace, going forward. The growth momentum in the economy must be sustained, because that alone can ensure the much-needed earnings growth that the market needs to remain resilient and gradually move up, said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
“The positive news about the auto industry is largely in the price. A sector that lagged last year was the consumer durables industry, which has the potential to catch up, going forward. The beneficial impact of the interest rate cuts and GST cuts is yet to reflect in the demand for consumer durables. In the short term, this is one segment that has good prospects,” added Vijayakumar.
On January 01, the Nifty 50 traded in a narrow range of 85 points following a vertical rise of over 300 points. At the current juncture, the Nifty is trading around an important price and trendline resistance zone of 26,200-26,240. Cross and sustenance above the said resistance zone will take it up to 26,325 levels, said Vipin Kumar, Assistant Vice President of Technical Research at Globe Capital. On the flip side, a fall below 26,040 levels will further extend the ongoing consolidation.
Let’s take a look at the key factors to watch out for today’s trading session
Early gainers and laggards
In early trade, among the Nifty 50, top gainers at this hour were Maruti Suzuki India, Hindalco Industries, Asian Paints, Tata Motors Passenger Vehicles, and Bharat Electronics. On the flip side, the key laggards in the Nifty 50 pack included ITC, Titan, Dr Reddy’s Lab, Bajaj Auto, and Nestle India.
Major movers on Friday
The stocks that were the major movers in the opening trade included HDFC Bank, Infosys, Tata Steel, Hindalco Industries, and Kotak Mahindra Bank, which were the major movers in the morning trade.
