Despite Sensex Plunge, Over 200 Stocks Hit One-Year Highs in January 3 Trading

The Indian stock market faced a downturn on Friday, January 3, as the benchmark Sensex dropped by over 700 points, or nearly 1%. Despite this market setback, nearly 200 stocks on the Bombay Stock Exchange (BSE) reached their 52-week highs during intraday trade, signaling pockets of resilience within the market.
Stocks such as HCL Technologies, Mahindra and Mahindra (M&M), Eicher Motors, Info Edge (Naukri), PB Fintech (PolicyBazaar), and United Spirits were among the top performers, hitting their one-year highs. Other notable names that reached their 52-week highs included Coromandel International, Ipca Laboratories, Muthoot Finance, Krishna Institute of Medical Sciences (KIMS), Radico Khaitan, and Welspun Corp.
Despite the strength seen in certain stocks, the Sensex closed the day at 79,223.11, down by 721 points or 0.90%. Similarly, the Nifty 50 slipped by 184 points, or 0.76%, to settle at 24,004.75. Mid and small-cap stocks showed relative strength, with the BSE Midcap index down 0.33% and the BSE Smallcap index closing nearly flat, down just 0.02%.
The losses in the domestic market were primarily driven by profit booking in select heavyweights, reflecting cautious sentiment due to concerns over slowing economic growth, expectations of weak earnings, high valuations, foreign capital outflows, and uncertainty surrounding US trade policies with the upcoming inauguration of President Donald Trump on January 20.
Ajit Mishra, SVP of Research at Religare Broking, suggested that the recent pullback in the market could be a temporary pause following the recent recovery. He emphasized that the Nifty 50 could face resistance around the 24,250 mark. He further recommended focusing on stock-specific opportunities, particularly in sectors like FMCG, auto, and energy, which are expected to outperform in the near term.
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