Stocks end at 7-month high; Nifty crosses 25,000 mark amid broad-based buying

Indian equities closed sharply higher on Thursday, with benchmark indices hitting their highest levels in seven months, buoyed by broad-based buying across sectors and strong intraday momentum.

The Nifty 50 index rose 395 points, or 1.6%, to close at 25,062, crossing the 25,000 mark for the first time since October 17, 2024. The Sensex jumped 1,200 points to settle at 82,530. Gains were seen across the board, with 49 of the 50 Nifty constituents ending in the green.

“Broadly, our view is that there is a cyclical recovery in India, which is underway, it's playing out quite well. Our sense was that we are looking at economic growth, which kind of bottomed out at 5.5% last year, it's kind of seeing a cyclical recovery. I think the significant monetary easing that RBI is doing, along with the tax cuts and the good monsoon should aid economic recovery in India. Of course, there are two external factors in terms of what happens to US tariff scenario and what happens to the geopolitical situation. But I think both seem to be in a much better place today as compared to what the things were like last month. So, I think broadly, the cyclical recovery is on track. We expect a low double-digit to mid-double-digit kind of earnings growth for broader markets, and I think markets definitely would respond to that strong earnings growth in the next three to four quarters,” said Varun Goel, Sr Fund Manager – Eq Mirae Asset Invst Managers.

Banking and midcap stocks also contributed to the rally. The Nifty Bank index added 554 points to close at 55,356, while the Nifty Midcap 100 rose 394 points to 56,531.

Hero MotoCorp led the gains on the Nifty, surging on the back of positive commentary around the two-wheeler segment. Metal stocks extended their recent strength, with JSW Steel rising more than 4%.

Tata Motors also climbed over 4%, supported by broader positive sentiment and continued investor interest in auto stocks. Realty stocks saw significant upside amid the market rally, with Macrotech Developers among the top gainers.

Vodafone Idea rose 4% after the telecom operator filed a fresh plea in the Supreme Court seeking a waiver of adjusted gross revenue (AGR) dues.

On the downside, Muthoot Finance declined 7% as investors booked profits following in-line fourth-quarter results. CESC missed earnings estimates and ended 3% lower, while Tube Investments of India fell 5% on weaker revenue numbers.

Mid- and small-cap names like Vascon Engineers and Tilaknagar Industries posted double-digit gains—13% and 14% respectively—after reacting positively to their Q4 earnings.

Defence stocks continued their upward momentum for a fifth straight session, with Cochin Shipyard rising 5% after reporting its Q4 results.

Market breadth remained positive, with the advance-decline ratio at 2:1, indicating a strong buying bias among investors.