Sensex Surges 500 Points, Nifty Crosses 23,250 Amid Energy and Metal Gains

resr 5paisa Research Team

Last Updated: 15th January 2025 - 12:40 pm

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Benchmark indices Sensex and Nifty opened higher on January 15, extending gains for the second straight session, driven by strong performances in energy, metal, and oil and gas stocks. However, weakness in pharma and healthcare stocks tempered the rally. Global markets provided largely positive cues, with the Dow Jones and S&P 500 closing higher, while the Nasdaq declined after a volatile session as investors analyzed inflation data and awaited quarterly earnings reports to assess stock valuations and the U.S. economy's strength.

By 11 AM, the Sensex had risen 479.48 points or 0.63% to 76,979.11, and the Nifty climbed 112.20 points or 0.48% to 23,288.25. Overall, 2,292 shares advanced, 989 shares declined, and 86 remained unchanged. According to Ajit Mishra, Senior Vice President of Research at Religare Broking, the rebound was largely driven by oversold market conditions that often prompt such recoveries. He suggested that investors should use this recovery to trim positions, particularly in mid-cap and small-cap stocks. Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, added that despite short-term relief, global uncertainties, foreign institutional outflows, and weak earnings growth continue to weigh on overall sentiment.

Among sectors, Nifty Energy emerged as the top performer with a nearly 2% gain, led by NTPC, Coal India, and ONGC. The Nifty IT, Metal, and Oil & Gas indices also advanced, rising around 1% each. Tech stocks rebounded after the previous day’s selloff following HCL Tech’s muted guidance, with Wipro, Tech Mahindra, and Infosys leading the recovery, although HCL Tech continued to decline. Banking indices, including Nifty Bank and PSU Bank, posted nearly 1% gains for the second consecutive session. In contrast, the pharma index fell by 1% due to losses in Dr. Reddy’s, Lupin, and Glenmark, while FMCG heavyweights such as HUL, ITC, and Nestle pulled the sector down by 0.5%.

The broader market showed signs of recovery, with mid-cap and small-cap indices rising 1% and 0.8%, respectively, though these segments have struggled since the start of the year, with declines approaching 10% due to concerns over high valuations and weak market sentiment. Premier Energies' shares rose over 2% after its subsidiaries received orders worth ₹1,460 crore for solar modules and cells, with supply expected to begin in May 2025. BSE share price climbed 4% for the third straight session after Nuvama initiated coverage with a "buy" rating and projected a 31% upside, highlighting the stock exchange’s resilience despite tighter derivatives regulations.

Shoppers Stop rallied over 8% following a 41.7% rise in its Q3 net profit to ₹52.2 crore and an 11.5% increase in revenue to ₹1,379.5 crore. On the institutional side, Foreign Institutional Investors (FIIs) sold equities worth ₹8,132 crore, while Domestic Institutional Investors (DIIs) purchased shares worth ₹7,901 crore.

Analysts identified key technical levels for the Nifty at 23,100, 23,000, and 22,800 as support, with resistances at 23,250, 23,400, and 23,500. For Bank Nifty, support levels are expected at 48,500, 48,200, and 47,900, while resistances are at 49,000, 49,400, and 49,700. Leading gainers in the Nifty included Power Grid, NTPC, Coal India, Maruti Suzuki, and Kotak Mahindra Bank, while Bajaj Finserv, Bajaj Finance, HDFC Life Insurance, Nestle, and SBI Life Insurance were among the top laggards.

Markets are expected to remain volatile, with stock-specific movements anticipated as Q3 results continue to be released. Investors remain cautious amid global uncertainty and fluctuations in institutional activity.

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