Final Trade: Sensex gains 632 points, Nifty at 23,166; markets rally for second day
Led by IT and financial stocks, Sensex jumped 632 points while Nifty settled at 23,166 as investors cheered global cues, Fed rate decision, and Budget optimism. Auto and IT stocks outperformed.
![Final Trade: Sensex gains 632 points, Nifty at 23,166; markets rally for second day](https://cdn.zeebiz.com/sites/default/files/2025/01/29/348857-market-up.png?im=FitAndFill=(1200,900))
Markets extend gains on global optimism Indian stock markets rallied for the second straight session on Wednesday, driven by strong buying in IT and auto stocks ahead of the U.S. Federal Reserve's rate decision and the Union Budget. The BSE Sensex surged 632 points to close at 76,564, while the Nifty 50 ended 190 points higher at 23,166.
Key drivers behind the rally:
Indian equity markets extended gains for the second straight session on Wednesday, with the Sensex jumping over 600 points and the Nifty crossing the 23,100 mark. IT and financial stocks led the rally, driven by optimism around the Reserve Bank of India’s (RBI) upcoming policy decision and global market cues.
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Rate cut expectations from RBI
Market sentiment improved following speculation that the RBI could initiate a rate-cut cycle in its February 7 policy meeting. Morgan Stanley anticipates a 25-basis-point cut, citing favorable domestic growth and inflation trends. Liquidity measures announced recently have further fueled expectations of easing monetary policy.
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U.S. Federal Reserve’s policy stance
Investors are keenly watching the Federal Reserve’s decision later in the day. While the Fed is expected to keep rates steady, market participants are looking for clues about future rate cuts, especially after Donald Trump’s call for lower interest rates. A dovish stance from the Fed could bolster foreign investments in emerging markets like India.
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Buying the dip
After recent corrections in broader indices, investors saw an opportunity to buy at lower valuations. Year-to-date, the Nifty has dropped 3.3 per cent, while midcap and smallcap indices have declined 9.1 per cent and 14.7per cent, respectively. The recent rebound reflects renewed confidence in market fundamentals.
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Rally in IT and auto stocks
The Nifty IT index climbed 1.7 per cent, led by gains in midcap players like Persistent Systems, LTIMindtree, and Coforge. Large-cap firms such as Infosys and TCS also saw positive movement, benefiting from overnight tech gains in global markets.
The Nifty Auto index surged 2 per cent, driven by Bajaj Auto’s 4.2 per cent rise and TVS Motor’s 7.3 per cent jump despite mixed Q3 earnings. Tata Motors, M&M, and Maruti also gained up to 3 per cent, as analysts remained bullish on future growth and export potential.
Sectoral and stock highlights:
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IT stocks: The Nifty IT index climbed over 1.5 per cent, led by gains in Persistent Systems, LTTS, Infosys, and Coforge.
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Auto sector: Nifty Auto rose over 1 per cent, with TVS Motor and Bajaj Auto gaining despite missing Q3 profit expectations.
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Top Sensex gainers: Infosys, Zomato, Tech Mahindra, Bajaj Finance, TCS, and ICICI Bank saw strong buying interest.
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Top losers: NTPC, Nestle India, HUL, Maruti, and Asian Paints traded lower.
Major stock movements:
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Bajaj Auto surged 4.56 per cent to Rs 8,775.40 post Q3 results, reporting a 3 per cent YoY rise in net profit to Rs 2,109 crore.
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Suzlon Energy hit a 5 per cent upper circuit at Rs 52.76 after a 90 per cent YoY profit jump to Rs 387 crore.
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BHEL gained 4.5 per cent to Rs 196.10 after Q3 profit soared 124 per cent YoY to Rs 135 crore.
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JSW Energy tumbled 10 per cent to Rs 453.60 after posting a 32 per cent YoY drop in Q3 PAT to Rs 157 crore.
Upcoming earnings & IPO listing:
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94 companies, including Bajaj Finance, Maruti, and Tata Motors, to announce Q3 results today.
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ITC Hotels debuts on exchanges today following its demerger from ITC.
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