The special one-hour Muhurat trading session on Friday saw benchmark indices end with modest gains, marking a positive start to the new year for the seventh straight year.
The Sensex closed at 79,724, gaining 335 points or 0.42 per cent, while the Nifty rose 0.41 per cent to 24,304.
Mahindra & Mahindra topped the Nifty gainers, surging 3.59 per cent, followed by ONGC (2.95 per cent) and Adani Ports (1.32 per cent). Dr. Reddy’s Laboratories, down 0.96 per cent and HCL Technologies, down 0.51 per cent, were the key laggards.
Market breadth remained positive, with 3,038 advances against 539 declines on the BSE, and 118 stocks making 52-week highs.
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Market pundits asked investors to tread with caution, given the lofty valuations and the recent spate of selling by overseas investors.
Ashishkumar Chauhan, MD & CEO, NSE, asked retail investors to pursue sustainable wealth creation through long-term investment and encouraged them to conduct thorough research before making any investment decisions.
Pranav Haridasan, MD and CEO, Axis Securities, said the new year could see one or two rate cuts by the RBI, depending on the trajectory of growth and inflation.
“While the long-term growth story for Indian equities remains stronger than ever, current valuations leave limited room for expansion. This means that growth in corporate earnings will be a pivotal driver of market returns. Stock picking with a balance of growth - at a reasonable price - and quality will be critical to achieving good returns over the coming year,” Haridasan said.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said FPI selling could continue to weigh on the indices, given India’s elevated valuations and concerns over deceleration in earnings growth.
Muhurat trading symbolizes the beginning of a new financial year. In 2023, Nifty had gained 0.5 per cent during the special session, with annual returns of 10.1 per cent. The 2022 Muhurat session saw gains of 0.9 per cent, with annual returns of -1.04 per cent.