Nifty 50 Records Best Day In Over A Month As Markets Cheer Financials, Auto Sales

Indian equities have entered 2025 on a positive note, with benchmark Nifty 50 set to record its best day in over a month, after gaining for the second session in a row on Jan. 2.

NSE's flagship index saw its highest intraday gains since Nov. 22 as nearly every constituent traded higher. Stocks from the financial services sector led the gains, followed by those in information technology and automobile spaces.

Financial services companies such Bajaj Finance Ltd., HDFC Bank Ltd., and Kotak Mahindra Bank Ltd. were the top contributors to the over 400-point gains in the index level.

Updates on loans' and deposits' growth for financial companies hinted towards positive trends for the quarter gone by, with brokerages also taking a positive stance.

Global brokerage Citi Research opened a 90-day positive catalyst watch on Bajaj Finance Ltd., with its price target implying a 17% upside.

It supported its positive stance stating an expectation of loan growth stability, positive trends in net interest margins, and only a marginal rise in credit cost against the trend seen for its segment peers.

Citi also opened a positive catalyst watch for Kotak Mahindra Bank, with a projected upside of 15%.

Stocks in the automobiles and auto components sector led gains in the benchmark, with Eicher Motors Ltd. advancing the most at close to 9% at the highest point of the day.

The gains followed positive trends for the automobile sales trend for the month of December, with Maruti Suzuki India Ltd. following close among gaining constituents, followed by auto-financier Shriram Finance Ltd.

On the day of expiry for Nifty 50's weekly options contracts with lot sizes revised from 25 to 75, the index shot past key resistances.

The 23,860-mark had become a notable resistance for the index level over the past few sessions, which it surpassed during intraday trades on Thursday.

The index also crossed the 24,000-mark which acted not only as a psychological resistance, but also saw significant open interest concentration around the level for call options.