FINAL TRADE: Sensex skyrockets 1,241 pts, Nifty settles near 21,750; ONGC jumps 9%

Stock market today: The stock market kicked off the week on a solid note on Monday, January 29, as headline indices jumped nearly 2 per cent, led by financials and energy stocks. Further, positive global stocks, too, aided the sentiment.

The blue-chip NSE Nifty 50 closed 1.8 per cent, or 385 points, higher at 21,737.6, while the S&P BSE Sensex settled 1.76 per cent, or 1240.9 points, stronger at 71,941.57.

Asian markets rose, led by China, after the country's market regulator said it would fully suspend the lending of restricted shares in an attempt to stabilise the country's stock markets.

Meanwhile, the Federal Reserve's favoured inflation reading showed moderating prices in December, bolstering hopes of early rate cuts.

Nifty Bank closed 1.28 per cent, or 576.2 points, higher at 45,442.35.

ONGC, RIL, Coal India, and Adani Enterprises were among the top gainers in the Nifty basket, trading with gains of around 9–4 per cent. On the other hand, Cipla, ITC, Infosys, and LTIMindtree were among the top losers.

"The domestic market underwent an upturn as the recent selloff and positive Asian peers provided an opportunity to accumulate quality stocks. Despite premium valuations, confidence is upheld among investors due to the optimistic environment surrounding the interim budget and the recent set of results aligning with forecasts," Vinod Nair, Head of Research, Geojit Financial Services, said.

"Globally, the upcoming FED policy stands out as a crucial factor. While a rate cut by the FOMC is unlikely, investors will eagerly monitor their commentary to get cues on future rate paths," Nair added.

Here are the likely factors responsible for today’s sharp gains on equity indices.

Recovery in financials: Beaten-down stocks from the financial space showed impressive recovery in today’s session. Shares of HDFC Bank posted decent gains of nearly 2 per cent and scaled to levels of Rs 1,462.85 at the day’s high after the apex bank RBI allowed LIC to increase its stake in the private lender. As per a Reuters report, since the lender’s weak December quarter results, financials have lost over 6 per cent in the last seven sessions.

Sharp gains in PSU stocks: Nifty PSE index, a barometer of the performance of public sector companies, buzzed in trade today with commendable gains of over 3 per cent, with ONGC, PFC, REC, and NHPC, among others, leading the gains.

GDP growth estimated over 7 per cent by 2030: In its economic review for January, the Finance Ministry mentioned that the strength of domestic demand has driven the economy to a 7 per cent plus growth rate in the last three years. Accordingly, in FY25, real GDP growth will likely be closer to 7 per cent. There is, however, considerable scope for the growth rate to rise well above 7 per cent by 2030. Read more 

Global Market

European equities started the week on a subdued note, after scaling two-year highs in the previous session, as heavy losses in travel stocks partially outweighed strong performances in the energy sector.

The pan-European STOXX 600 index was flat at 483.66 points on Monday, as of 0823 GMT. The benchmark index hit its highest level in two years and clocked the best week in three months on Friday.

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