Taking Stock | Sensex surges 1.8%, Nifty tops 23,700; capital goods, banking, energy lead rally

Market sentiment remained upbeat ahead of the Reserve Bank of India's bi-monthly policy announcement scheduled for Friday.

India's benchmark indices, Sensex and Nifty, surged 1.8% on the back of strong gains in capital goods, banking, energy, and auto stocks. Market sentiment remained upbeat ahead of the Reserve Bank of India's bi-monthly policy announcement scheduled for Friday.

Global cues also lifted investor confidence, with US President Donald Trump delaying tariffs on Mexico and Canada while signaling trade discussions with China.

At close, the Sensex climbed 1.81% (1,397.07 points) to 78,583.81, while the Nifty advanced 1.6% (378.20 points) to 23,739.25.

According to a Moneycontrol poll, market expectations indicate a potential 25 basis points (bps) cut in the repo rate, bringing it down from 6.5% to 6.25% in the upcoming Monetary Policy Committee (MPC) meeting on February 7. Experts anticipate a rate cut despite inflation remaining above the 4% medium-term target, citing sluggish growth, government estimates, and liquidity-boosting measures as key factors supporting the case.

Among sectoral indices, BSE Capital Goods led the gains, jumping 3.4%, followed by BSE Healthcare and Oil & Gas, which rose 2.4% each. Meanwhile, BSE Industrials and Power also advanced 2.3% each.

Outlook for February 5

Vinod Nair, Head of Research, Geojit Financial Services.

Yesterday, the Indian market struggled to absorb the optimism generated by the good union budget due to heightened geopolitical risks stemming from ‘Trump tariff war’. However, India could outperform in a weak global market, and as a rebound has been triggered in the global sentiment, it has fueled a sharp surge in domestic equities. While overall market sentiment remains positive, large-cap stocks are the preferred choice. Meanwhile, banking stocks are rallying in anticipation of a rate cut in this week's RBI policy, new governor's first meet.

Index	Prices	Change	Change%
Sensex	84,495.30	-501.83	-0.59%
Nifty 50	25,903.90	-150.00	-0.58%
Nifty Bank	58,098.85	-286.40	-0.49%

Nifty 50 25,903.90 -150.00 (-0.58%)

Thu, Oct 30, 2025

• 1D
• 5D
• 1M
• 3M
• 6M
• 1Y
• 2Y

Biggest Gainer	Prices	Change	Change%
Coal India	388.45	6.45	+1.69%

Biggest Loser	Prices	Change	Change%
Dr Reddys Labs	1,202.60	-48.30	-3.86%

Best Sector	Prices	Change	Change%
Nifty Energy	36366.40	18.50	+0.05%

Worst Sector	Prices	Change	Change%
Nifty Pharma	22275.20	-155.50	-0.69%

Rupak De, Senior Technical Analyst at LKP Securities

The Nifty has moved up following a falling wedge pattern retest, indicating the possibility of a decent rally in the short term. Additionally, the index has been sustaining above the critical 21EMA on the daily timeframe. The RSI is in a bullish crossover and rising after forming a base on the daily timeframe, indicating strong momentum. In the short term, the index may move toward 24,050 and higher, while support levels are placed at 23,500 and 23,250.

Ajit Mishra – SVP, Research, Religare Broking

The market extended its recovery trend, climbing nearly 1.5% amid positive cues. A strong start, driven by a rebound in global markets, gained further traction as renewed buying in select heavyweight stocks sustained the upbeat sentiment throughout the session. All major sectors contributed to the rally, with energy, banking, and metals leading the gains. Meanwhile, broader indices also saw solid traction, rising between 1.08% and 1.6%.

The index rebound signals a determined effort by bulls to reclaim lost ground, with a decisive break above the critical resistance at the 200 DEMA i.e. 23,620 in Nifty potentially strengthening their position further. The next target range stands at 23,900–24,200. Notably, the banking and financial sectors have played a key role in the recovery, and a decisive move past the 50,200 level in the banking index will be crucial for sustaining the momentum.

Given the prevailing market conditions, we maintain our focus on selective stock picking, emphasizing relative strength, with a preference for large-cap and large mid-cap stocks.