Indian Stock Markets Witness Strong Rally Ahead of Key Events


January 31, 2023

New Delhi, India

Today’s Market Highlights

In a significant turnaround, the Indian stock markets closed with robust gains as the Sensex surged 612.21 points, or 0.86%, settling at 71,752.11, and the Nifty gained 203.60 points, or 0.95%, closing at 21,725.70. This positive momentum followed a weak start, with key indices rebounding on the back of optimism surrounding the Federal Reserve’s monetary policy decision and the upcoming Union Budget.

Sector-wise Performance

The pharma and PSU banking sectors emerged as the day’s top performers, contributing to the overall market rally. In contrast, capital goods saw a mild dip. The midcap and smallcap indices outshone the frontline index, registering gains of 1.5% and almost 2%, respectively.

Individual Stocks Movement

Gainers on the Nifty included notable names such as Dr Reddy’s Laboratories, Eicher Motors, Sun Pharma, Divis Labs, and Tata Motors. On the flip side, some losers included L&T, Titan Company, Tata Consumer, BPCL, and Kotak Mahindra Bank.

Corporate Earnings Impact

Sun Pharma reported a consolidated net profit increase of 16.5% for the December quarter, reaching ₹2,523.75 crore. Dabur India and Bank of Baroda also posted positive Q3 results, with an 8% rise in net profit and a 19% increase, respectively.

Global Market Influences

Asian shares faced a broad decline, while China’s manufacturing activity contracted for the fourth consecutive month. In the US, the Nasdaq fell, and Alphabet shares dropped approximately 5% post-hours due to lower-than-expected fourth-quarter ad revenue.

Technical Analysis and Expert Opinion

Aditya Gaggar, Director of Progressive Shares, noted that the markets started on a negative note but reversed at a strong support level of 21,460. The technical analysis indicates a bullish trend, with a Piercing Candlestick pattern observed. Gaggar predicts a potential breakout if the Index surpasses 21,850, targeting 22,470, while citing immediate support at 21,615.

Upcoming Events and Market Outlook

The market exhibited volatility in anticipation of the Federal Reserve’s rates decision and the Union Budget. Investors are closely monitoring these key events for further market cues.

In conclusion, the Indian stock markets displayed resilience, with positive sentiments prevailing despite global uncertainties. The next few sessions are crucial, and market participants are keenly watching for developments on both the domestic and global fronts.

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