Nifty50 Reclaims 24,000 Mark, Records Highest Single-Day Gain in Over a Month

The NSE benchmark Nifty50 index on January 2, 2025, opened on a positive note and sustained its momentum, reclaiming the crucial psychological level of 24,000. By 2:00 PM, the index was trading 380 points higher at 24,127 (+1.61%), marking one of its sharpest single-day gains in over a month.

Broad Market Participation Drives Gains

A robust market breadth propelled the index upwards, with 48 stocks advancing against just 2 stocks in the red. The rally was led by Infosys and M&M, collectively contributing 101 points to the Nifty50, followed by Bajaj Finance, Maruti, and Reliance. On the downside, Sun Pharma and Britannia registered modest losses.

India VIX Declines Amidst Rally

A noteworthy aspect of the rally was the decline in market volatility. The India VIX—the volatility gauge—dropped by 3.65%, slipping below the 14-mark.

January’s Historical Performance

Historically, January has been a subdued month for the Nifty50 index. Since 1999, the average return for January has been just 0.17%, with a 55.5% probability of negative performance. Moreover, since 2019, the index has failed to deliver positive returns in January, as shown below:

2025 Off to a Strong Start

Contrary to past trends, 2025 has begun on a strong note. In just the first two trading sessions, the index has already delivered a 2% return, indicating renewed optimism among investors.

The best-performing January on record was in 2012, with a 12.43% gain, followed by 1999 and 2001, which saw gains of 9.27% and 8.56%, respectively.

Nifty50 PE

As of January 1, 2025, the Nifty50 PE ratio stands at 21.9, which is below its 1-month, 3-month, 2-year, and 5-year averages. This suggests the index is reasonably valued, providing room for further upside.

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