Equity markets continued their winning streak for the fourth day in a row on Friday, driven by the anticipation of a pro-growth budget following the emphasis on deregulation in the Economic Survey. The BSE Sensex rose above the 77,500 mark and the Nifty 50 closed above 23,500.
Devarsh Vakil, Head of Prime Research at HDFC Securities, commented, “The Economic Survey 2024-25 has boosted confidence in India’s strong economic fundamentals, suggesting that the current investment slowdown is temporary.”
The BSE Sensex surged by 740.76 points or 0.97 per cent to settle at 77,500.57, while the NSE Nifty 50 climbed 258.90 points or 1.11 per cent to end at 23,508.40. The positive global cues following the European Central Bank’s decision to cut interest rates by 25 basis points helped fuel the rally.
Market breadth remained overwhelmingly positive, with 2,719 stocks advancing and 1,203 declining on the BSE. Sixty-two stocks hit their 52-week highs, while 85 touched their 52-week lows. The broader markets outperformed the benchmarks, with Nifty Midcap Select rising by 1.15 per cent and Nifty Next 50 gaining 1.50 per cent.
Vinod Nair, Head of Research at Geojit Financial Services, highlighted, “The indices are being driven by expectations of a pro-growth budget and prudent fiscal measures as indicated in the economic survey. Positive global cues and better-than-expected results from major companies have also contributed to the upward trend.”
In terms of sector-wise performance, all indices closed in the green, with FMCG and Energy sectors leading the gains at nearly 2 per cent. The India VIX, which measures market volatility, decreased by 6.56 per cent to 16.25, indicating overall market stability.
Prashanth Tapse, Senior VP (Research) at Mehta Equities, observed, “Markets maintained their upward momentum for the fourth consecutive day as benchmark indices recorded significant gains ahead of the important Budget announcement, supported by strong global cues. Equity markets received a boost after the ECB cut interest rates by 25 bps, which also led to softened US bond yields.”
Shrikant Chouhan, Head Equity Research at Kotak Securities, provided sectoral insights: “In the past week, the Nifty-50 Index and Sensex each gained 1.6 per cent. Capital goods (+3.5 per cent), Auto (+3.0 per cent), Realty (+6.2 per cent), FMCG (+0.7 per cent) and Power (+1.0 per cent) ended in green. Major sectoral losers for the week include IT (-1.9 per cent), Consumer Durable (-0.9 per cent), Metal (-0.5 per cent), Telecom (-2.5 per cent) and Pharma (-2.3 per cent).”
Foreign portfolio investors (FPIs) were net sellers in the capital market segment, offloading equities worth ₹4,582.95 crore on January 30, 2025. On the other hand, domestic institutional investors (DIIs) were net buyers, investing ₹2,165.89 crore during the same period. Among other categories, proprietary traders recorded a net outflow of ₹68.99 crore, while clients also saw a net outflow of ₹8.31 crore. Non-resident Indians (NRIs) were net buyers with an inflow of ₹3.80 crore.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted, “Having crossed the hurdle of 23,500 levels, bulls could aim for another resistance at 23,800 levels in the near term, with immediate support at 23,400 levels.”
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd, pointed out, “Nifty crossed its short-term hurdle of 23,430 and formed a strong bullish candle on the daily chart, indicating strength.”
The Indian rupee traded flat near 86.63 against the US dollar, with market participants absorbing the U.S. Federal Reserve’s decision to maintain unchanged interest rates. Jateen Trivedi, VP Research Analyst at LKP Securities, stated, “With the Fed event behind us, attention now turns to India’s upcoming budget and FII investment trends.”
Market capitalization data showed consistent growth throughout the week, with all-India market capitalization reaching ₹41,874,921.63 crore as of January 30, 2025, while the top 10 companies’ market capitalization stood at ₹9,380,873.68 crore.
The Economic Survey 2025, presented in Parliament, projected growth of 6.3 per cent-6.8 per cent for FY26. Bharat Dhawan, Managing Partner at Forvis Mazars in India, remarked, “India’s economic trajectory remains strong, with a clear focus on deregulation, investment, and sectoral transformation.”
Sunil Damania, Chief Investment Officer at Mojopms, emphasized, “The Indian stock market’s wealth creation story has faced obstacles, with many investors who thrived in 2024 now experiencing significant portfolio losses. Ahead of the Union Budget, the key expectation is to revive market sentiment.”
In global developments, the European Central Bank reduced interest rates to 2.75 per cent, while German GDP contracted by 0.2 per cent in the final quarter. Former President Trump of the US confirmed plans to impose 25 per cent tariffs on imports from Mexico and Canada from February.
Ajit Mishra, SVP Research at Religare Broking Ltd, advised, “Given the prevailing uncertainty, we recommend maintaining a cautiously optimistic stance and favoring hedged positions until the event unfolds.”
