FINAL TRADE: Sensex, Nifty jump nearly 1% ahead of Interim Budget; financial, auto stocks rally

Stock market today: After a weak start, the domestic indices made a sharp comeback on Wednesday, January 31, amid healthy buying in all the sectors barring capital goods. HDFC Bank and Reliance Industries (RIL) were the top contributors to the indices' gains. On the contrary, L&T slumped over 4 per cent on lower-than-expected Q3 numbers and was the top loser on the Sensex.

The Nifty index ended 203.6 points, or 0.95 per cent, higher at 21,725.7, and the Sensex finished the day 612.21 points, or 0.86 per cent, stronger at 71,752.11. Meanwhile, investors eagerly awaited the Interim Budget, slated to be presented on February 1, and the US Fed meeting decision due later in the day. Dr Reddy's, Eicher Motors, Sun Pharma, and Tata Motors were among the top gainers in the Nifty basket, rising up to 5 per cent. On the other hand, apart from L&T, Titan, BPCL, and Tata Consumer Products were among the top losers.

The high-beta Nifty Bank index, whose 12 constituents include SBI, HDFC Bank, and ICICI Bank, finished the day 629.05 points, or 1.39 per cent higher at 45,996.8. Nifty Small Cap 100 ended with gains of 2.25 per cent while Nifty Mid Cap 100 settled 1.63 per cent stronger.

"A positive build-up was reflected in Indian markets prior to the interim budget; although expectations are low, the market anticipates a lower fiscal deficit supported by buoyant tax revenues. The overall trend in the market is akin to a seesaw, and the buy-on-dips strategy is effective as of now," Vinod Nair, Head of Research, Geojit Financial Services, said.

"The pharma sector stood out with a positive earnings outlook. Global market cues are mixed ahead of the FOMC meeting, and US 10-year yields were marginally down. An immediate rate cut seems improbable, but indications about the future trajectory could ease volatility," Nair added.

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