Nifty snaps 2-day losing streak, Hits New Highs

Mumbai, India, January 4, 2024: Indian markets witnessed a robust rally today, snapping a two-day losing streak and leaving investors jubilant. The benchmark Sensex soared 490 points, closing at 71,847, while the Nifty 50 jumped 141 points to end at a record high of 21,658.

Here are the key drivers of today’s surge:

  • FII Inflows: Foreign Institutional Investors (FIIs) turned net buyers after a brief hiatus, pumping in an estimated $40-50 billion. This renewed optimism from overseas investors fueled the rally.
  • Positive Global Cues: European markets rebounded sharply on the back of strong economic data, further bolstering sentiment in India.
  • Sectoral Performance: Realty stocks led the charge, with Nifty Realty rising over 6%. Other gainers included consumer staples, utilities, and pharma. IT and auto stocks lagged, but still managed to register positive returns.
  • Company-Specific News: Sobha Ltd. shares surged 19% to hit a 52-week high after the company reported strong sales in Q3. Multibagger stock, TTK Prestige, also rallied on continued momentum.

Also Read: RVNL Surges 3% on Order Win: Can the Multibagger Reclaim its One-Year High?

What Investors Should Watch:

  • FII activity: Continued FII inflows are crucial for sustaining the rally.
  • Global cues: The performance of European and US markets will have a bearing on Indian stocks.
  • Earnings season: Q3 earnings announcements begin this week, with Infosys kicking off tomorrow. The results will give investors a clearer picture of corporate performance and future outlook.
  • Budget expectations: The Union Budget is due on February 1st and fiscal policy announcements will be keenly watched by investors.


Analysts remain cautiously optimistic about the Indian market. While risks like global headwinds and rising inflation persist, the current momentum bodes well for the short term. Investors should, however, adopt a balanced approach and diversify their portfolios to mitigate potential risks.

Additional insights:

  • Jio Financial: The stock gained largecap status in the AMFI reclassification, further boosting sentiment in the financial sector.
  • Banks: Analysts predict a strong year for banks, driven by healthy credit growth and improving asset quality.
  • Smallcaps: Several smallcap stocks continue to outperform, offering attractive opportunities for discerning investors.

For our readers, I recommend keeping an eye on:

  • Infosys Q3 earnings tomorrow: The IT giant’s performance will set the tone for the sector.
  • Budget-related news: Stay tuned for updates on potential tax reforms and infrastructure spending plans.
  • Midcap and smallcap stocks: Explore high-growth potential companies in these segments.

Also check: Satyameva Jayate: Adani Group Claims Vindication After Supreme Court Verdict, Stocks Surge

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