Nifty, Sensex extend gains for third day, led by financial, oil & gas stocks; Budget 2025 in focus

The expiry of January futures and options contracts today is expected to fuel volatility as traders roll over their positions to the next month.

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26 Aug, 2025 12:21

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Sensex and Nifty extended their gains into the third consecutive day on January 30, fueled by advances in financial services and oil & gas stocks. After the U.S. Federal Reserve held rates steady and remained tight-lipped about the trajectory of future rate cuts, attention has shifted to today's monthly expiry of January futures and options contracts, with the Union Budget 2025 on February 1. Investors are hoping for measures that stimulate growth while maintaining fiscal discipline.

At 11:44 PM, the Sensex was up 161 points or 0.2 percent at 76,694, and the Nifty was up 77 points or 0.3 percent at 23,240. About 2,249 shares advanced, 1,105 shares declined, and 110 shares were unchanged. Despite this, the Nifty and Sensex have dropped nearly 2 percent in January, poised to mark their longest monthly losing streak in 23 years. Both indices remain about 11.5 percent below their record highs from September 27, 2024.

The expiry of January futures and options contracts today is expected to fuel volatility as traders roll over their positions to the next month.

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"The recovery in the market is healthy since it is being led by fairly valued largecaps. The rally can sustain if the Budget comes up with some strong growth stimulating measures that can improve the market sentiments too," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

"However, a sustained rally can happen only if the FII selling stops and we get some leading indicators suggesting growth and earnings recovery," he added.

FIIs have offloaded Indian equities worth Rs 81,600 crore in January, marking the second-highest monthly outflow on record. The persistent strength of U.S. Treasury yields and lacklustre domestic earnings have deterred foreign inflows.

Global markets, including the U.S. and Asia-Pacific, were mixed after the Fed kept interest rates unchanged at 4.25-4.5 percent, offering no timeline for future cuts. Fed Chair Jerome Powell indicated that further rate cuts would be data-dependent, emphasizing the need for tangible progress on inflation or labor market conditions.

The broader market saw a retreat from its highs, with the BSE Midcap index rising by 0.4 percent and the BSE Smallcap index gaining 0.7 percent.

Power Grid, Bajaj Finance, ONGC, Cipla, and Bharat Electronics were among the top gainers on the Nifty 50, each advancing 2-3 percent. Meanwhile, Tata Motors, Infosys, Shriram Finance, UltraTech Cement, and ICICI Bank were the biggest losers, with declines ranging from 0.5-6 percent.

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Non-bank lender Bajaj Finance saw its shares rise by 3 percent, leading the financials index after reporting a larger quarterly profit driven by strong loan growth. On the other hand, Tata Motors' shares plunged 6 percent following a smaller-than-expected quarterly profit, weighed down by weak car sales.

In individual stock movements, Whirlpool of India dropped 20 percent after its parent company, Whirlpool Corp, announced plans to reduce its stake in the Indian unit from 51 percent to 20 percent. Brigade Enterprises gained 2 percent after posting a rise in December-quarter profits, buoyed by strong demand for luxury homes.

Earnings reports from companies like Adani Enterprises, Larsen & Toubro, Adani Ports, Bajaj Finserv, and GAIL India are also expected today.

Meanwhile, markets are also bracing for the European Central Bank’s policy decision, with a 25-basis-point deposit rate cut anticipated.

Hardik Matalia, Derivative Analyst at Choice Broking, noted that Nifty could face resistance at 23,250, with a significant hurdle at 23,400. On the downside, if selling pressure persists and Nifty sustains below the 23,000-22,800 range, further weakness could extend the decline toward the 22,500-22,000 zone.

"Given the prevailing volatility, traders are advised to exercise caution, implement strict stop-loss strategies, and avoid carrying long positions overnight to effectively manage risk," he added.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.