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Equity benchmarks staged a relief rally on Tuesday, with the BSE Sensex surging 535.24 points to close at 75,901.41, primarily driven by banking and financial stocks after the Reserve Bank of India announced measures to inject liquidity through open market operations.
The NSE Nifty advanced 128.10 points to end at 22,957.25, though it retreated significantly from the day’s high of 23,137 in the final hour of trading. The Bank Nifty emerged as a standout performer, climbing 802.20 points or 1.67 per cent to settle at 48,866.85, while the Nifty Financial Services index gained 422.80 points or 1.89 per cent.
“The benchmark indices staged a volatile trading session. After a roller coaster of activity, the Nifty ends 128 points higher,” noted Shrikant Chouhan, Head of Equity Research at Kotak Securities. “On daily charts, it has formed a long-legged Doji candlestick formation, which suggests indecisiveness between bulls and bears.”
The financial sector dominated the gainers’ list on the NSE, with Bajaj Finance leading the advance, surging 4.31 per cent, followed by Axis Bank at 3.71 per cent, Shriram Finance at 3.56 per cent, Bajaj Finserv at 3.42 per cent, and HDFC Bank at 2.67 per cent. On the flip side, Sun Pharma witnessed the steepest decline, falling 4.24 per cent, while other major losers included Britannia (-2.15 per cent), Hindalco (-2.08 per cent), Grasim (-1.75 per cent), and BEL (-1.69 per cent).
- Also read: Share Market Highlights: Sensex, Nifty recover from two-day decline, powered by bank stocks
Market breadth remained decisively negative, with 2,666 stocks declining against 1,308 advances on the BSE, while 110 stocks remained unchanged. The session saw 60 stocks hitting 52-week highs, while 569 touched their 52-week lows, reflecting the underlying weakness in the broader market.
“After two consecutive days of decline, Nifty experienced a relief rally,” said Nandish Shah, Deputy Vice President at HDFC Securities. “NSE cash market volumes were higher by 21 per cent compared to yesterday and highest in a month. Both the Midcap and smallcap indices bucked the trend where Nifty Midcap 100 fell by 0.51 per cent while Nifty Smallcap 100 plunged by 1.81 per cent.”
The Indian rupee continued to face pressure, declining by 0.25 paise to close at 86.51 against the US dollar. “Multiple factors weighed on its performance. Persistent FII outflows continued to drain capital from Indian markets, while a rise in the dollar index added further pressure on the domestic currency,” explained Jateen Trivedi, VP Research Analyst at LKP Securities.
In the commodities segment, gold showed positive momentum, gaining ₹380 to trade at ₹79,950 on MCX. “Comex gold found strong support near $2,735, maintaining its upward momentum. The upcoming U.S. Federal Reserve policy decision and India’s Union Budget are critical events, keeping participants cautious,” Trivedi added.
Looking ahead, market experts remain cautious about the near-term outlook. “The market will likely continue to be driven by volatility, as uncertainty over RBI MPC meet in the coming week and the FOMC meeting during the current week will likely weigh in on the market,” said Ameya Ranadive, Senior Technical Analyst at StoxBox.
“Support for Nifty is placed at 22786, while immediate resistance is seen at 23137 followed by 23347,” observed Nandish Shah. “The market participants are waiting for two major events – FOMC meeting scheduled tomorrow and Union Budget 2025 on 01-Feb.”
Sector-wise, the Realty index emerged as the top gainer, surging over 2 per cent, while Capital Market and Pharma indices faced the most pressure, declining more than 2 per cent each.
“Large-cap stocks outperformed, as their valuations have now reached fair levels and are further supported by expectations that the market correction is nearing its bottom. In contrast, mid- and small-cap stocks continued to decline, as they remain overvalued,” concluded Vinod Nair, Head of Research at Geojit Financial Services.
- Also read: Q3 Results Live Today: TVS Motor, Cipla shares surge, Apar Industries crash 20%, Suzlon Energy ends flat; Bajaj Auto to announce Q3 results
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Published on January 28, 2025
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