Equity markets commenced the week on a strong note, with the BSE Sensex closing at a high of 77,073.44, up 454.11 points or 0.59 per cent, while the broader Nifty 50 gained 141.55 points or 0.61 per cent to end at 23,344.75. The surge was led by Kotak Mahindra Bank’s outstanding performance, which soared 9.06 per cent following better-than-expected quarterly results.
Vinod Nair, Head of Research at Geojit Financial Services, attributed the rally to “a solid beginning of earnings season from the banking and financial sectors, prompting a broad-based rally on expectations of improved earnings in the near future.” However, he warned about the uncertainties surrounding Trump’s policies and the impact of high oil prices.
The banking sector stole the show, with the Nifty Bank index jumping 810.20 points or 1.67 per cent to close at 49,350.80. Apart from Kotak Mahindra Bank, other financial stocks like Bajaj Finance and Bajaj Finserv also posted significant gains of 3.42 per cent and 3.35 per cent, respectively.
In the technology sector, Wipro saw a substantial increase of 6.58 per cent after reporting strong quarterly numbers, while NTPC recorded a gain of 2.70 per cent. On the downside, insurance stocks witnessed selling pressure, with SBI Life declining 2.82 per cent and HDFC Life dropping 1.34 per cent. Other losers included Trent (-2.20 per cent), Shriram Finance (-1.98 per cent), and Adani Ports (-1.29 per cent).
Market breadth remained positive, with 2,503 stocks advancing against 1,557 declines on the BSE. The session saw 115 stocks hitting their 52-week highs and 75 touching their 52-week lows. Ten stocks hit the upper circuit, while two touched the lower circuit.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, highlighted the optimism in Asian and European markets ahead of Trump’s inauguration, which had a positive impact on Indian benchmarks. He also emphasized that local investors are eagerly anticipating the Union Budget scheduled for February 1.
The broader market also showed strength, with the Nifty Midcap Select index gaining 106.65 points or 0.87 per cent to close at 12,356.50. The Nifty Next 50 index edged up marginally by 52.55 points or 0.08 per cent to end at 65,106.15.
Technical analysts like Shrikant Chouhan, Head of Equity Research at Kotak Securities, remain cautiously optimistic about the market’s trajectory. Chouhan pointed out a higher bottom formation on daily and intraday charts, supporting a further uptrend, with 23,170 identified as a crucial support level for the Nifty.
Looking ahead, Ajit Mishra, SVP Research at Religare Broking Ltd, advised caution with aggressive positions as markets appear to be consolidating post the recent decline. Mishra stressed the importance of monitoring budget-related themes and developments following Trump’s inauguration for potential cues.
