Sensex Rallies Over 1,300 Points; Gains 2% in Just 2 Sessions of CY25

The BSE Sensex extended its rally into the second trading session of Calendar Year 2025, surging over 1,300 points or 1.69% as of 2:28 PM on January 2, 2025. Trading at 79,824, the advance-decline ratio heavily favoured advances, with 29 stocks in green and only one in red—Sun Pharma being the lone underperformer.

Top Gainers Lead the Charge

The Bajaj Twins emerged as the top gainers, with Bajaj Finserv advancing over 7% and Bajaj Finance climbing 6.6%. Auto stocks also displayed robust performance, with Maruti Suzuki rising 5.16% and Mahindra & Mahindra (M&M) gaining 4.13%.

Breaking the January Slump

Historically, January has been a sluggish month for the Sensex, averaging just 0.30% gains since 1999. Interestingly, 52% of January’s since then have ended in the red. However, 2025 appears to be breaking this pattern. Notably, the index hasn’t posted positive returns in January since 2020, making this 2% surge particularly significant.

Rare January Performance

The only instance of double-digit January gains occurred in 2012 when the Sensex soared 11.25%. 

PE Ratio of Sensex 

As of January 1, 2025, the PE ratio of the BSE Sensex stands at 22.8, which is below its 1- and 3-month averages as well as 2- and 5-year averages, suggesting valuations remain attractive despite the recent rally.

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