Indian Stocks Start 2025 on a Strong Note, Sensex Climbs by Over 1,200 Points
New Delhi [India], January 2 – The Indian stock market has opened 2025 on a positive note, with the Sensex and Nifty both showing significant gains in the first two days of the year. As of the latest update, the Sensex stood at 79,752.03 points, climbing 1,244.62 points, or 1.59%, reflecting strong investor optimism.
Market experts have indicated that the upcoming Q3 earnings season will play a crucial role in determining the future direction of the markets. Attention is expected to shift to expectations surrounding the Union Budget and the policy decisions of the Trump 2.0 administration in the coming months. Ajay Bagga, a veteran banking and market expert, highlighted that the inauguration of “Trump 2.0” will be the most significant global event of January and possibly of the year.
In a boost to market sentiment, Gaurang Shah, Head Investment Strategist at financial services firm Geojit, pointed to strong advance tax collections, a stable GST collection performance, and a positive outlook for some sectors in Q3. However, he also anticipated some profit-taking as the rally progresses.
India’s Goods and Services Tax (GST) collections in December reached Rs 1.76 lakh crore, reflecting a year-on-year growth of 7.3%. This pushed the total GST collection for the fiscal year 2024-25 to Rs 16.33 lakh crore, marking a 9.1% increase from the same period last year, when the figure stood at Rs 14.97 lakh crore.
The Indian stock market is experiencing its highest gains in two weeks, with significant contributions from the auto, tech, and financial services sectors, as noted by Kedia Advisory. Despite this, investor caution remains, especially with potential new tariff policies that may arise under Donald Trump’s presidency.
However, the Sensex still remains nearly 6,000 points below its all-time high of 85,978 points, and while 2024 saw both the Sensex and Nifty gaining 9-10%, it was a more modest year in comparison to the 16-17% rise in 2023. The market’s performance in 2022 was comparatively weaker, with only a 3% gain in both indices.
Challenges such as weak GDP growth, foreign fund outflows, rising food prices, and sluggish consumption dampened investor sentiment in 2024. Additionally, the Indian rupee is hovering near its all-time low, impacted by expectations of fewer rate cuts from the U.S. Federal Reserve, a widening trade deficit, and subdued economic growth seen in the first half of 2024-25.
As the market continues to ride this positive wave, all eyes are on the forthcoming corporate earnings and the unfolding global political landscape, which will likely influence the Indian stock market’s next moves.
