On November 25, 2024, the Indian stock market witnessed a historic day with the benchmark indices, Sensex and Nifty, attaining new highs. Sensex advanced by 1.28% to close at 80,127 points with Nifty recording 1.45% in the green at 24,254. Support for the rally was provided by the stocks of Adani Group, which accounted for a significant share of the overall gains. Adani Enterprises rose by 20% and this contributed to the group witnessing a remarkable recovery-expected for a total of ₹13 trillion in market capitalization, a recovery from past controversies.
The elections in Maharashtra triggered optimism among investors and quickly increased confidence in the infrastructure and finance categories. The most prominent banks ICICI Bank, HDFC Bank, and also Reliance Industries performed notably well, lending still more impetus to the bullish move. The momentum also trickled down into the midcap and small-cap sectors on the exuberance of enthusiastic retail investors.
The performance was guided by a comfortable opening backed by good global cues, along with stable domestic conditions. The IT sector led the charge since stocks like Infosys and TCS saw exceptionally good gains, providing ample support to the rally in the broader market. Besides, banking was also in fine fettle, with heavy liquidity and growth in loans that were much better than envisaged.
Still, analysts have noted, that despite a strong close, expressions of caution were there from investors, considering the global uncertainties along with the ongoing geopolitical tensions, which could make future market movements uncertain. The technical setup for the Nifty shows that there might be resistance in the next few trading sessions around 23,750, while the support is likely at 23,350, thus indicating short-term volatility in the index. Nevertheless, with India’s economic fundamentals remaining incredibly strong, the outlook for the market in the long term remains positive.
Market participants now remain focused on upcoming economic data and global events that might shape market direction heading into the New Year.
