Nifty 50, Sensex Surge Nearly 2% on Positive Global Cues and All-Round Buying

The Indian stock market witnessed widespread buying on Monday, January 29, with key indices – Nifty 50 and Sensex – surging nearly 2% each. This surge was driven by positive global cues and all-round buying in the domestic market.

India VIX, the volatility index, also saw a jump of 13% on Monday. Traders and investors are closely monitoring the volatility ahead of the Interim Budget 2024, scheduled for February 1, as well as the upcoming US Federal Reserve policy decision and Jerome Powell’s commentary.

The Budget, which will be a Vote on Account ahead of the General Elections 2024, is not expected to have any major impact on the market sentiment. However, economists and market experts anticipate the government to continue its focus on fiscal consolidation, infrastructure, and manufacturing.

The US Federal Reserve is expected to maintain interest rates and experts are hopeful that Fed Chair Jerome Powell will sound dovish due to easing inflation pressures in the US.

Nifty 50 opened at 21,433.10 and touched an intraday high of 21,763.25, closing with a gain of 385 points at 21,737.60. Sensex opened at 70,968.10 and touched an intraday high of 72,010.22, closing with a gain of 1,241 points at 71,941.57. Only five stocks, namely ITC, Infosys, Tech Mahindra, TCS, and Tech Mahindra, closed in the red.

The midcap and smallcap indices also witnessed healthy gains, rising 1.68% and 1.03% respectively. The overall market capitalization of firms listed on the BSE rose to nearly ₹377.2 lakh crore, making investors richer by about ₹6.1 lakh crore in a single session.

Among the gainers in the Nifty 50 index were ONGC, Reliance Industries, and HDFC Bank, while Bharti Airtel, ITC, and Infosys were the top laggards.

Most sectoral indices ended with strong gains, with the Nifty Oil & Gas index jumping 5.18% followed by the PSU Bank index rising 2.43%. The Nifty Bank index rose 1.28% and the Auto index jumped 1.68%. The Nifty FMCG index was the only one to end in the red, while the Media index remained flat.

Experts suggest that the Nifty has breached the previous swing high of 21,750, indicating a shift in trend and a violation of the downtrend. Moving forward, analysts expect the market to remain range-bound between 21,200 and 22,000. The immediate hurdle for the Nifty is seen at the range of 21,850 – 22,000.