On January 7, 2025, Indian benchmark indices BSE Sensex and Nifty50 traded higher, buoyed by positive global cues. At 2 PM, the Sensex was up by 132 points (0.17%) at 78,097, and the Nifty50 rose by 73 points (0.31%) to 23,689.45. The rally was supported by global markets, with Wall Street’s S&P 500 and Nasdaq closing higher, driven by a strong performance in tech stocks.
The 30-stock BSE Sensex was predominantly led by stocks like Tata Motors, IndusInd Bank, and Reliance Industries, which gained over 2%, while only seven stocks, including Zomato and TCS, traded lower. The Nifty50 mirrored this trend with 36 stocks in the green. Leading gainers included ONGC (up 4.83%) and Tata Consumer Products, while TCS and HCLTech saw losses.
Sector-wise, the energy sector was the top performer, climbing 1.73%, followed by healthcare, pharma, and metal indices, all of which gained more than 1%. In contrast, the IT and media sectors were in the red, declining by 0.68% and 0.21%, respectively. The PSU Bank and Bank Nifty indices also saw positive movement, further lifting sentiment in the broader markets. The Nifty Midcap 100 rose by 0.83%, and the Nifty Smallcap 100 gained 0.87%.
The India VIX, which measures market volatility, was lower by 6.35% at 14.66, reflecting reduced investor anxiety. This decline in the VIX added to the positive outlook for the market.
Meanwhile, external factors weighed on the market, particularly concerns over the HMPV virus and its spread from China. The Indian government has urged states to increase surveillance of influenza-like illness (ILI) and respiratory infections. This follows an uptick in cases of HMPV in China, which caused some investor unease despite the market's overall positive performance.
In the broader market context, Indian investors were also watching the IPO space, with several mainline and SME IPOs in focus. The Indo Farm Equipment Limited IPO was listing today, while other mainline IPOs, such as Capital Infra Trust InvIT and Quadrant Future Tek Limited, opened for subscription. The primary market continues to witness heightened activity, signaling growing investor interest.
Overseas, Asia followed Wall Street's positive lead, with Japan's Nikkei gaining 2% thanks to a rally in technology stocks. China’s CSI300 and Shanghai Composite reversed early losses to post modest gains, while Hong Kong’s Hang Seng index fell sharply by 1.89%.
In commodities, oil prices edged lower, with Brent crude at $76.28 per barrel and US crude at $73.48 per barrel, as global economic concerns weighed on demand expectations.
Looking ahead, markets are closely monitoring key economic data releases from the US, including the nonfarm payrolls report on Friday, which could provide more clarity on the Federal Reserve's future monetary policy. The expectation of a less aggressive Fed easing cycle has kept US Treasury yields supported and contributed to the positive sentiment across global markets. However, investors remain cautious, particularly regarding inflation data from the eurozone and potential shifts in US tariff policies under the incoming Trump administration.
