Sensex and Nifty extended early gains, surging more than half a percent, with all 13 sectoral indices firmly in the green on January 31 ahead of the Economic Survey 2025. Optimism surrounding the upcoming Union Budget 2025 fueled bullish sentiment, while the broader market also gained momentum, with both the BSE Midcap and NSE Smallcap rising over 1 percent each.
By 11:15 AM, Sensex was up 453 points or 0.6 percent at 77,213, and Nifty had gained 176 points or 0.8 percent, reaching 23,425. About 2,325 shares advanced, 953 shares declined, and 114 shares remained unchanged. However, despite the recent rally, both Nifty and Sensex are down 1.2 percent in January, on track for their longest monthly losing streak in 23 years. The small and midcap indices have seen declines of 11 percent and 7 percent, respectively.
"Since we are going into the Budget without a pre-Budget rally, the probability of a rally, post Budget, will be high if the Budget delivers on growth stimulating initiatives like cuts in personal income tax," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. "But it is important to understand that the impact of the Budget will last only for a few days, at best. The medium to long-term trend of the market will be dictated by GDP and earnings growth."
Follow our live blog for all the market action
Regarding the ongoing Q3 FY25 earnings season, Vijayakumar said, "The market is strongly reacting to results with good results being rewarded and poor results getting punished. This has spiked the market volatility. Fairly-valued high-quality largecap financials continue to be a safe sector for investors."
Sectors like construction, auto, FMCG, and IT powered the Nifty 50's gains.
Tata Consumer shares jumped 4 percent, despite posting a smaller-than-expected third-quarter profit, thanks to growth in its tea, salt, and international segments. Infrastructure bellwether Larsen & Toubro rose 4 percent as its orders hit an all-time high, driven by strong international business performance.
Shares of Ola Electric Mobility surged 12 percent after data revealed the company gained market share in January. The stock is now hovering near its IPO price of Rs 76. According to VAHAN data, Ola Electric's market share at the end of January stood at 30 percent, up from 19 percent last month.
Bank of Baroda shares fell over 4 percent, likely pressured by declining net interest margins.
Hardik Matalia, Derivative Analyst at Choice Broking, forecasted that Nifty would face resistance near 23,500 and a sustained close above this resistance level is crucial to negate the prevailing bearish sentiment and confirm a bullish reversal. According to him, on the downside, 23,000 serves as critical support, with a breach potentially triggering further selling toward 22,800.
"Given the prevailing volatility, traders are advised to exercise caution, implement strict stop-loss strategies, and avoid carrying positions overnight while maintaining strict stop-losses, as high volatility is expected ahead of the Union Budget 2025," 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
