Indian share markets hit a fresh record high today, boosted by auto and IT stocks, as focus shifted to third-quarter earnings with IT major Tata Consultancy Services (TCS) reporting its results later in the day.

Earnings optimism and positive global cues fueled a broad-based rally in the markets with benchmark indices settling 1.5% higher.

At the closing bell, the BSE Sensex stood higher by 689 points (up 1.4%).

The NSE Nifty closed higher by 210 points (up 1.5%).

Maruti Suzuki and Tech Mahindra were among the top gainers today.

The SGX Nifty was trading at 14,371, up by 180 points, at the time of writing.

The BSE Mid Cap index ended up by 1%, and the BSE Small Cap index ended up by 0.7%.

On the sectoral front, gains were largely seen in the IT sector, the auto sector, and the health care sector.

Asian stock markets ended higher today. As of the most recent closing prices, the Hang Seng ended up by 1.2% and the Shanghai Composite ended down 0.2%. The Nikkei zoomed 2.4%.

US stock futures are trading marginally higher today indicating a positive opening for Wall Street indices. Nasdaq Futures are trading up by 37 points (up 0.3%), while Dow Futures are trading up by 52 points (up 0.2%).

The rupee is trading at 73.26 against the US$.

Gold prices for the latest contract on MCX are trading down by 1.5% at Rs 50,157 per 10 grams.

Meanwhile, silver prices are trading down by 2.4% at Rs 68,280 per kg.

Here are Top 5 Factors Why Indian Share Markets Rallied Today

Firm Global Cues: Asian share markets ended near record-high levels which influenced the sentiment back home. Japan's Nikkei hit a three-decade peak as investors looked beyond rising coronavirus cases and political unrest in the United States to focus on hopes for an economic recovery later in the year.

European stocks also rose, with Germany's DAX hitting a record high on the back of better-than-expected economic data and encouraging earnings updates from chipmakers.

Trump Concedes: With the US Congress affirming Joe Biden's electoral college victory over President Donald Trump, it ends the uncertainty surrounding the elections as well as the equity markets. Donald Trump conceded on Thursday that Biden will be the next US president.

Economic Recovery: As per economists, the Indian economy may grow at 8-11.5% at constant prices and 11.5% with current prices in 2021-22. The central government expects the GDP to shrink less than expected.

IT and Automobile Stocks Rally: Automobile and IT heavyweights such as Infosys, TCS, Tech Mahindra, Maruti Suzuki, and M&M surged in the range of 3-5%. IT stocks rallied ahead of the December quarter numbers of TCS.

Rising Oil Prices: Crude oil prices hit 11-month highs today, on track for a strong weekly gain as a rally in global equities fed risk appetite and stoked bullish sentiment following Saudi Arabia's pledge to cut output.

We will keep you updated on how these factors develop in the coming days and what effect they have on Indian stock markets. Stay tuned!

Speaking of stock markets, note that since the lows in March 2020, the smallcap index has gained more than 110%.

In news from the pharma sector, Sun Pharma and Strides Pharma Science were among the top buzzing stocks today.

Shares of Sun Pharma rose 3% to hit an over two-year high of Rs 622.50 on the BSE on expectations of steady earnings visibility.

The board of directors of Sun Pharma are scheduled to meet on January 29, 2021, to consider and approve the financial results of the company for the quarter ended December 31, 2020 (Q3FY21).

Sun Pharma's results for the quarter ended September 2020 (Q2FY21) were above estimate on all fronts, mainly on account of better-than-expected operational performance, tax gain on the creation of deferred tax assets, higher other income, and lower interest expense.

Sun Pharma's share price ended the day up by 3.1%.

Meanwhile, Strides Pharma Science's share price fell 3% to Rs 939, down 6% from its early morning high after Aditya Puri joined as an advisor to the Strides Group & Director of Stelis Biopharma.

The drug maker's stock hit a 52-week high of Rs 1,000 in intra-day trade today.

"Puri's appointment to the Stelis Board comes at an exciting juncture for the company as it transitions from its incubation phase to a consolidation and growth phase to establish itself as a partner of choice globally with the aim of bringing world-class treatments at affordable costs to patients in both emerging and developed markets," Strides said in a press release.

Aditya Puri was the founder-Managing Director and Chief Executive Officer of HDFC Bank from its inception in 1994 until his retirement from the position in October 2020.

With Stelis poised for its next leg of growth, this is the right time to expand the Board, and ensure robust guidance and governance by the best possible industry minds, said Arun Kumar, Founder & Chairman of the board of Strides.

Moving on to news from the automobile sector, Mahindra & Mahindra (M&M) today announced a price increase for its personal & commercial range of vehicles from today, January 8, 2021, due to a rise in input costs.

Shares of the company surged 4% today to hit its 52-week high on the back of the above news.

The price will increase by around 1.9%, resulting in an increase of Rs 4,500 - Rs 40,000, depending on the model and variant, M&M said in a press release.

The company further said that in the case of the new Thar, the current price increase will be effective for all bookings done between December 1, 2020, and January 7, 2021. All fresh bookings for new Thar, effective January 8, 2021, will have prices as applicable on the date of delivery, it said.

The management said the price increase was necessitated due to the unprecedented increase in commodity prices and various other input costs over the past many months.

Note that M&M had already increased the price of its range of tractors, across models with effect from January 1, 2021, due to the increase in commodity prices.

M&M's share price ended the day up by 3%.