Market Summary: Sensex closes at 85,567, up 638 points | Nifty ends at 26,172, gains 206 points | IT and Metal stocks lead the rally
📊 Market Overview: Bulls Make Strong Comeback
Indian benchmark indices staged an impressive rally on Monday, December 22, 2024, with both Sensex and Nifty extending Friday's gains despite mixed global cues. The 30-share BSE Sensex surged 638.12 points, closing at 85,567.48, while the Nifty50 added 206 points to settle at 26,172.40. | Indian Share Market News |
Opening Bell Performance:
- Sensex opened at 85,145.90, gaining 216 points in early trade
- Nifty started at 26,055.85, up 89 points from previous close
- Broader markets joined the rally with BSE MidCap up 0.84% and SmallCap gaining 1.17%
The rally was driven by strong buying interest in IT and metal stocks, coupled with optimism surrounding the India-New Zealand free trade agreement signing.
Top Market Movers
Biggest Gainers:
On BSE:
- Trent - Leading the pack with significant gains
- Infosys - IT major rallied on positive global tech sentiment
- Bharti Airtel - Telecom stock continued its upward momentum
On NSE:
- Trent - Maintained top position
- Shriram Finance - Surged over 5% hitting all-time high of ₹946.40 following MUFG Bank's ₹39,618 crore investment deal
- Wipro - IT stock gained on sectoral strength
Top Losers:
Major Drags:
- State Bank of India (SBI) - Banking heavyweight faced selling pressure
- Kotak Mahindra Bank - Private sector bank declined
- Larsen & Toubro (L&T) - Infrastructure major slipped
- HDFC Life - Insurance stock faced headwinds
- Tata Consumer - FMCG stock under pressure
Railway Stocks Rally on Fare Hike
Railway sector stocks witnessed a significant surge after the Indian Railways announced a revision in fare structure:
Key Performers:
- IRCTC - Led the rally
- Jupiter Wagons - Soared 14.75% to ₹298.65 after promoter Tatravagonka acquired additional stake worth ₹135 crore
- RailTel - Gained on positive sector sentiment
- RVNL (Rail Vikas Nigam) - Extended gains
- BEML, RITES, Texmaco, Titagarh - All traded higher
Fare Revision Details:
- Mail and express non-AC coaches: Increased by 2 paise per kilometer
- AC classes: Increased by 2 paise per kilometer
- Ordinary class journeys beyond 215 km: Increased by 1 paise per kilometer
- New fares effective from December 26, 2024
✈️ IndiGo Joins Sensex: Major Index Reshuffle
In a significant development, InterGlobe Aviation (IndiGo) officially entered the 30-share BSE Sensex today, replacing Tata Motors Passenger Vehicles (TMPV).
What Changed:
Sensex:
- IndiGo IN, Tata Motors PV OUT
BSE 100:
- IDFC First Bank IN, Adani Green Energy OUT
Sensex 50:
- Max Healthcare IN, IndusInd Bank OUT
Sensex Next 50:
- IndusInd Bank and IDFC First Bank IN
- Max Healthcare and Adani Green Energy OUT
Why the Change:
The reshuffle follows Tata Motors' demerger, which separated its passenger and commercial vehicle businesses. The restructuring significantly reduced TMPV's free-float market cap, pushing it below the threshold for Sensex inclusion.
Impact on IndiGo:
Despite operational challenges including flight cancellations due to new duty time rules, IndiGo's inclusion is expected to:
- Attract passive fund inflows
- Increase stock visibility and liquidity
- Position the airline as India's aviation sector representative in the benchmark index
IndiGo's Performance:
- Up 28% year-to-date in 2025
- Stock currently dominates 66% of India's domestic aviation market
- Recently approved $820 million investment in subsidiary for fleet expansion
💰 Shriram Finance Hits All-Time High
Shares of Shriram Finance skyrocketed over 5% to reach an all-time high of ₹946.40 following a landmark deal:
Deal Highlights:
- MUFG Bank (Japan) to invest ₹39,618 crore (approximately $4.4 billion)
- Investment through preferential issuance of equity shares
- MUFG Bank will acquire 20% stake on a fully diluted basis
- One of the largest foreign investments in India's financial services sector
The stock's rally reflects strong investor confidence in the NBFC sector and international validation of India's financial market strength.
💻 IT Sector Leads the Charge
The Nifty IT index emerged as one of the top sectoral gainers, driven by:
Positive Factors:
- Strong global tech sentiment
- Positive cues from US markets
- Recovery after recent corrections
- Optimism around AI and digital transformation deals
Major Gainers:
- Infosys
- Tech Mahindra
- Wipro
- HCL Tech
🏗️ Metal Stocks Shine Bright
The Nifty Metal index joined IT stocks as top sectoral performer:
Drivers:
- Rising global commodity prices
- Positive demand outlook
- Infrastructure spending expectations
- China stimulus hopes
Top Performers:
- Vedanta - Among buzzing stocks
- Hindustan Zinc - Silver price surge boosting sentiment
- Other metal majors gained on sectoral tailwinds
🌏 FII & DII Activity
Foreign Institutional Investors (FIIs):
- Friday saw FIIs buying stocks worth ₹1,830.89 crore (net)
- Positive reversal after months of selling
- Year-to-date: FIIs remain net sellers with ₹2.96 lakh crore outflow
Domestic Institutional Investors (DIIs):
- Purchased equities worth ₹5,722.89 crore on Friday
- Continue to support market amid FII volatility
- YTD buying: ₹4.93 lakh crore (supporting domestic stability)
Key Insight: Retail investors and DIIs have emerged as market saviors in 2024, offsetting massive FII selling through consistent SIP inflows and domestic participation.
📉 India VIX Hits 2-Year Low
The India VIX (Volatility Index) dropped to 8.86 on December 22, marking a two-year low. This indicates:
- Reduced market uncertainty
- Improved investor confidence
- Lower expected volatility in coming weeks
- Favorable environment for equity investments
🌐 Global Market Influence
Asian Markets:
- Mixed performance across Asian indices
- Japan's Nikkei gained on weak yen and AI investment sentiment
- Hong Kong markets showed resilience
US Markets:
- Positive overnight session on Wall Street
- Tech stocks rallied on strong chipmaker forecasts
- Fed easing expectations continue to support growth
Crude Oil:
- Oil prices increased following US interception of Venezuelan oil tanker
- Brent crude trading around recent levels
- Geopolitical tensions adding support to prices
📰 Corporate News Highlights
Jupiter Wagons
Promoter Tatravagonka acquired 28.72 lakh equity shares worth ₹135 crore through warrant conversion. Stock surged 14.75% to ₹298.65.
Kinetic Engineering
Shares jumped nearly 15% after subsidiary Kinetic Watts and Volts announced technology partnership with JioThings for electric two-wheeler digital features.
Hindustan Construction Company
Stock rose 11.65% to day's high of ₹20.70, highest level since December 5, on strong volume activity.
E to E Transportation Infrastructure
Railway infrastructure company's IPO set to open December 26, 2025. Early grey market trends suggest favorable sentiment. Company aims to raise ₹84.22 crore.
🎁 India-New Zealand FTA Impact
The signing of the India-New Zealand Free Trade Agreement boosted market sentiment, particularly benefiting export-oriented sectors:
Key Benefits:
- All Indian exports to New Zealand will be tariff-free
- Major boost for labour-intensive sectors:
- Textiles and apparel
- Leather and footwear
- Marine products
- Gems and jewellery
- Handicrafts
- Engineering goods
- Automobiles
This agreement is expected to enhance India's export competitiveness and open new markets for Indian businesses.
📈 Technical Analysis
Nifty Technical Outlook:
Support Levels:
- Immediate support: 25,700-25,800 (50-day EMA zone)
- Strong support: 25,500
Resistance Levels:
- Immediate resistance: 26,200-26,300
- Breakout zone: 26,500
Analyst View (Bajaj Broking): The Nifty has formed a bullish candle with higher high and higher low, signaling positive momentum. The index is expected to consolidate in the 25,700-26,200 range. A clear breakout or breakdown will determine the next directional move.
Bank Nifty:
Key Levels:
- Support: 58,300-58,600 (50-day EMA and breakout area)
- Resistance: 59,500 (sustained move above could test 60,100 all-time high)
Pattern: Doji candlestick indicates consolidation with stock-specific action. Analysts expect base formation in 58,500-60,100 range.
💡 Market Outlook & Strategy
Short-Term View:
- Range-bound trading expected between 25,700-26,200 for Nifty
- Buy-on-dips strategy recommended
- Focus on IT, Metal, and select banking stocks
Key Factors to Watch:
- Q3 GDP Estimate - Awaiting policy clarity with consensus pointing to resilient growth
- Trade Negotiations - Limited progress on trade talks adding caution
- Geopolitical Tensions - Ukraine-Russia conflict, crude price volatility
- FII Flows - Recent buying trend sustainability crucial
- Rupee Movement - Continued depreciation against USD (7th consecutive year)
Sectoral Strategy:
- Overweight: IT, Metals, Healthcare, Consumer Durables
- Neutral: Banking, Auto
- Underweight: Media (worst performer in 2024 with -23% returns)
📊 2024 Market Performance Snapshot
As December 2024 nears its end, here's how markets performed:
Index Returns (YTD):
- Nifty 50: +9.24% (as of Dec 26)
- Sensex: +8-10%
- Nifty Smallcap 100: +23.86%
- Nifty Midcap 100: +23.66%
Sectoral Winners:
- Realty, Pharma, Consumer Durables led gains
- IT and Metal showed strong recovery
IPO Market:
- Over 300 IPOs raised ₹1.8 lakh crore (record-breaking)
- 78 mainboard IPOs, 69% trading at premium
- SME IPOs outperformed mainboard offerings
Key Trends:
- DIIs emerged as market heroes with ₹4.93 lakh crore buying
- SIP inflows crossed ₹25,000 crore twice (Oct, Nov)
- India's market cap reached $5.18 trillion (5th largest globally)
- Retail investor participation at all-time high
🎯 Stock-Specific Recommendations
Analysts' Top Picks:
Nomura on Tata Motors Commercial Vehicles:
- Rating: Buy
- Target Price: ₹481
- Upside: 22%
- Rationale: Upcoming upcycle in MHCV segment, Iveco acquisition benefits
Hindustan Zinc:
- Silver price surge driving sentiment
- Strong EPS growth projected
- Improved cost efficiency supporting outlook
Shriram Finance:
- Post-MUFG deal, strong growth trajectory expected
- Target prices being revised upward by brokerages
- NBFC sector gaining traction
📅 This Week's Calendar
Upcoming Events:
- December 24: E to E Transportation Infrastructure anchor booking
- December 26: Railway fare hike effective, E to E IPO opens
- December 30: Week closes ahead of year-end
Data Releases:
- Infrastructure output data awaited
- Q3 GDP estimate expected soon
- Budget 2026-27 expectations building
💭 Expert Views
Vinod Nair, Head of Research, Geojit Investments: "Indian markets extended their year-end rally, supported by strong liquidity and global cues, as expectations of further Fed easing in 2026 continue to underpin growth. FIIs turned net buyers, reinforcing the positive tone, with IT and metals leading gains."
Rupak De, Senior Technical Analyst, LKP Securities: "Following a weak start, the Nifty recovered smartly during the day. If Nifty moves above 23,700, it could advance towards 23,900-24,000. On the lower end, support is placed at 23,550."
Key Takeaways for Investors
- Domestic strength continues: DIIs and retail investors remain pillars of market stability
- Sectoral rotation: IT and metals showing leadership after consolidation
- Index changes: IndiGo's Sensex entry marks aviation sector's growing prominence
- Railway sector opportunity: Fare hike supporting sector sentiment
- Volatility low: India VIX at 2-year low suggests stable market environment
- FTA boost: India-New Zealand agreement to benefit export sectors
- Mid/Small caps outperforming: 23%+ returns vs 9% in large caps
- SIP power: Retail SIPs providing consistent monthly support of ₹20,000+ crore
⚠️ Risks to Monitor
- Global Uncertainties: Trade tensions, geopolitical conflicts
- Rupee Depreciation: 7th consecutive year of decline against USD
- Crude Volatility: Energy prices impacting inflation and margins
- Q3 Earnings: Corporate results will be crucial for next leg of rally
- Valuation Concerns: Some pockets appear expensive after recent rally
Closing Thoughts
December 22, 2024, proved to be another positive day for Indian markets, with bulls firmly in control. The combination of strong domestic flows, improving global sentiment, and positive policy developments (India-NZ FTA) provided the perfect cocktail for market gains.
The entry of IndiGo into Sensex marks a symbolic shift in India's economic landscape - from traditional manufacturing (Tata Motors PV) to services and connectivity (aviation). This reflects the changing face of India's growth story.
As 2024 draws to a close, Indian markets have proven their resilience despite record FII selling, showcasing the strength of domestic participation and the maturation of India's capital markets.
For Tomorrow: Watch for continuation of IT and metal strength, railway stocks momentum, and broader market consolidation around current levels.
Stay Updated
For real-time market updates, follow: the scale factor by nik
- NSE India: www.nseindia.com
- BSE India: www.bseindia.com
- Market pulse: Keep tracking sectoral trends and FII/DII data
Disclaimer: This article is for informational purposes only. Please consult with a certified financial advisor before making investment decisions. Past performance does not guarantee future results.
Last Updated: December 22, 2024 | Market Close: 3:30 PM IST Last Updated: December 2025 | Written by THE SCALE FACTOR BY NIK
Market Closed: Sensex at 85,567.48 (+0.75%) | Nifty at 26,172.40 (+0.79%)
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