Key stock indices Sensex and Nifty opened the New Year on a positive note with investors betting on IT, auto and select banking and financial stocks.
The benchmark BSE Sensex rose by 119.98 points or 0.25% to 47,871.31 in early trade.
The broad-based NSE Nifty breached the 14,000 level by rising 38.60 points or 0.28% to 14,020.35 in opening trade.
Led by Mahindra & Mahindra, auto stocks gained ahead of their monthly sales data. M&M rose the most among Sensex stocks by 2.3%.
SBI, TCS, Infosys, Reliance, Larsen & Toubro and Bajaj Finance were among the major gainers.
Titan, ICICI bank and Sun Pharma dropped due to profit booking.
FPIs have been a major driver of the rally in Indian stock markets. According to exchange data, FPIs bought shares worth ₹1,135.59 crore on a net basis on December 31.
The indices finished the year 2020 with overall gains of around 15%. The Sensex gained 15.7% while the Nifty jumped 14.9% in the year.
U.S. markets also closed the COVID-19 pandemic-hit year with record highs on December 31.
The S&P 500 index finished with a gain of 16.3% for the year, the Nasdaq composite soared 43.6%, while the Dow Jones Industrial Average gained 7.2%.
