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Updated January 4th, 2024 at 16:31 IST

Sensex ends 490 points higher, Nifty closes above 19.6K; finance, energy stocks among top gainers

NSE Nifty 50 index, representing blue-chip stocks, rose by 0.66% to reach 21,658.60 points, while the S&P BSE Sensex gained 0.69% to close at 71,847.57 points.

Business Desk
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Stock market news | Image:Republic World
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Stock market today: After a two-session decline, India's benchmark indices, S&P BSE Sensex and NSE Nifty 50, saw a strong rebound on Thursday, January 4, 2023, driven by robust business updates in the financial sector and investment plans in energy stocks.

The NSE Nifty 50 index, representing blue-chip stocks, rose by 0.66 per cent to reach 21,658.60 points, while the S&P BSE Sensex gained 0.69 per cent to close at 71,847.57 points.

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"Expect markets to witness consolidation in the next four to five sessions ahead of results as investors await earnings to match up to expensive valuations," said Narendra Solanki, head of fundamental research at Anand Rathi Shares and Stock Brokers.

Despite the anticipation of three US interest rate cuts following the Federal Reserve minutes, a potential delay in the onset of rate cuts might trigger consolidation in global markets, Solanki noted.

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Financials took the lead in the Nifty, registering a 1.22 per cent increase. Non-bank lender Bajaj Finance saw a surge of 4.34 per cent, while IndusInd Bank added about 3 per cent on the back of strong quarterly business updates.

The energy index also performed well, gaining 1.18 per cent, with power producer NTPC leading the way with a 3.56 per cent surge. NTPC proposed a total investment of $19.20 billion in Gujarat state for various projects, including energy parks.

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The more domestically focused Nifty small- and mid-caps outperformed the benchmarks, posting gains of 0.99 per cent and 1.68 per cent, respectively.

Solanki emphasised that the sustainability of expensive valuations hinges on the continued strength of earnings in small- and mid-cap companies.

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Realty companies extended their record rally for the fourth consecutive session, rising by 6.76 per cent, marking their best day since September 2021. Knight Frank Research anticipates robust sales momentum in the real estate sector throughout 2024.

On the flip side, state-owned oil marketing companies, including Bharat Petroleum Corp, Hindustan Petroleum Corp, and Indian Oil Corp, witnessed losses ranging from 1 per cent to 2 per cent. This decline followed CLSA's downgrade of ratings from "buy" to "sell," citing valuation concerns after a recent rally.

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(With Reuters inputs.)

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Published January 4th, 2024 at 16:31 IST

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