Share Market market Rally Factors: On Thursday, the Indian stock market showed strength in contrast to the fall in Asian markets and the major indices saw a tremendous jump. The BSE Sensex rose more than 1,500 points, while the Nifty50 rose more than 450 points to regain the level of 24,200. With this, the total market capitalization of all listed companies on BSE increased by ₹ 5.58 lakh crore to ₹ 450.01 lakh crore.

In the end, the Sensex rose 1,436.30 points or 1.83 per cent to close at 79,943.71 and the Nifty rose 445.75 points or 1.88 per cent to close at 24,188.65. About 2312 stocks rose, 1496 stocks declined and 108 stocks remained unchanged.

Bajaj Finserv, Eicher Motors, Bajaj Finance, Maruti Suzuki, Shriram Finance were the top gainers in Nifty, while Britannia Industries and Sun Pharma declined. BSE Midcap and Smallcap indices gained one percent each. All sectors closed in the green, with the auto index rising 3.5 percent and the IT Sensex rising 2 percent.

Main reasons for today's market boom

1. Strong auto sales in December

The auto sector witnessed a strong surge, despite the usually low demand in the month of December. Eicher Motors jumped 7% as Royal Enfield reported a 25% year-on-year growth in sales. The company sold 79,466 units in December as against 63,887 units sold in the previous year. Maruti Suzuki too witnessed a 4.5% jump with sales rising 30% to 1,78,248 units. Mahindra & Mahindra (M&M) and Ashok Leyland shares also gained over 4%.

2. Boom in the IT sector

The IT sector, which is the second largest after the financial sector, saw growth of more than 2%. CLSA and Citi forecast further revenue growth for this sector in the December quarter and in 2025. Major IT companies such as Infosys, TCS, HCL Tech, and Tech Mahindra contributed more than 300 points to the Sensex in total.

3. India's economy is expected to improve

Bernstein said in its strategy for 2025 that India's economy has bottomed out and is likely to recover in the next 1-2 quarters. "As the ambiguity of policy decisions subsides and the base is reset, growth may accelerate," it said, giving a positive outlook to the Indian stock market.

4. Recovery in banking and financial sector

The banking and financial sector also saw a strong recovery, with Bajaj Finserv and Bajaj Finance recording growth of around 6% and 8% respectively. Other private banks such as HDFC Bank, Kotak Mahindra Bank, and IndusInd Bank also supported the market.

5. Purchase on expiry day

Nifty50 was trading in a narrow range between 23,900 and 23,500 for the last two weeks. Today, during the expiry day, a decisive breakout above this range was seen, which led to further gains in the market.