Sensex Jumps 450 Pts, Nifty Above 23,700 as Energy, PSU Bank Stocks Rally

Indian equity markets rebounded on January 7, snapping a two-day losing streak as benchmark indices Sensex and Nifty surged. Gains in energy and PSU bank stocks led the rally, while the broader market outperformed the frontline indices, reflecting strong investor sentiment.

Key Highlights from the Market Today

Sectoral indices followed suit, with Nifty Energy and Nifty PSU Bank rising over 1%. Broader markets, including the Midcap and Smallcap indices, gained 1.1% and 1.2%, respectively, outperforming the large-cap index.

Top Gainers and Losers

(as of January 7, 2025 9:43 AM)

Factors Driving the Market Rally

1. Global Sentiment Recovery:

After a sharp 1.5% fall on January 6, caused by fears surrounding Human Metapneumovirus (HMPV), the market rebounded as investor concerns eased.

2. Broad-Based Recovery:

All sectors traded in the green, with energy, FMCG, pharma, and realty leading the way.

Broader Market Performance

The broader market indices—Nifty Smallcap 100 and Nifty Midcap 100—rose over 20% in 2024, significantly outpacing the Nifty's 9% annual gain. Mid-cap and smallcap stocks are expected to remain attractive in 2025 due to strong earnings growth.

Global and Domestic Challenges

1. Global Risks:

• Strengthening of the dollar index (currently at 108).
• Rising crude oil prices (up from $70 to $77 per barrel).

2. Domestic Factors:

• Investor sentiment weighed by virus concerns.
• Upcoming quarterly earnings are expected to provide a more precise market direction.

Conclusion: Market Outlook

The rebound in Sensex and Nifty reflects underlying market resilience, but volatility is likely to persist amid global and domestic challenges.