Stock Market Update: Despite the weak trend in Asian markets, the domestic stock markets are witnessing a stormy rise on Thursday (January 2). Sensex and Nifty rose more than 1 percent due to strong buying in financial stocks. A strong rally in auto, IT and banking stocks also pulled the market upwards.

The 30-share BSE Sensex opened 150 points higher at 78,657.52 on Thursday (January 2). It had closed at 78,507.41 on Tuesday. At 1 pm, the Sensex was trading at 79,520.13 with a stormy gain of 1012.72 points or 1.29%.

Similarly, the National Stock Exchange (NSE) Nifty50 also opened with gains. At 1 pm, it was trading at 24,062.25 with a strong gain of 319.35 points or 1.35 percent.

Both benchmark Sensex and Nifty closed higher by around 0.4% on Wednesday (January 1) in the first trading of the year 2025. Rise in lead auto stocks pulled the market higher. Auto stocks rose due to rise in monthly sales of Maruti Suzuki and Mahindra & Mahindra.

Reason for rise in stock market on Thursday (2 January)?

After the recent big fall or correction, the domestic markets have become cheaper. Due to this, good quality stocks are available at attractive prices, due to which strong buying is being seen in the market today. Let us tell you that NSE Nifty has fallen 8.5% from its record level and Sensex has fallen 7.36% from its all-time high.

G Chokkalingam, founder of Equinomis Research, said, “The sharp correction in the Indian equity market has given a strong boost to select good quality and low-priced stocks.”

How will Nifty50 move?

Akshay Chinchalkar, Head of Research at Axis Securities, said that Nifty has been rising for the second consecutive day but we have to keep in mind that this is a time of low liquidity. In such a situation, we can also lean towards the prices of stocks. Nifty50 is currently trading at a support price between 23876 to 23970 and the daily moving average remains around 200 at this level. Apart from this, short term support remains between 23545 to 23640. He said that at present there is a weak environment in the market and it will remain till the Nifty achieves a closing of 24,150 points.

Sensex and Nifty gave a return of 8.4% in 2024

Nifty and Sensex ended 2024 by giving investors a return of 8.4%. However, this is much lower than the return of around 20% in the year 2023. The market has been affected by the softness in the quarterly results of corporate companies and continuous foreign selling in the last quarter.

In the year 2024, the Sensex jumped 5,898.75 points or 8.16 percent and the Nifty rose 1,913.4 points or 8.80 percent. The BSE benchmark Sensex hit its record peak of 85,978.25 on September 27 this year and the NSE Nifty also hit its all-time high of 26,277.35 on the same day.

How will the market move in the new year?

According to experts, factors such as high yields in the US along with foreign investors' selling will continue in the new year as well. Monthly auto sales data and pre-quarter business updates to be released this week will be important for the Indian markets as they will determine the direction of the upcoming results season market.