The Indian benchmark indices, Sensex and Nifty, ended the day in the green today. The Sensex closed at 75,901.41, gaining 535.24 points or 0.71%. Similarly, the Nifty ended at 22,957.25, up by 128.10 points or 0.56%.
The Nifty Bank also posted a positive closing, finishing at 48,866.85, up by 802 points or 1.67%.
The positive closing comes after the RBI made a move to infuse liquidity into the market. The RBI announced a Rs 60,000 crore Open Market Operation (OMO) for the purchase of government securities. These OMO auctions are scheduled for January 30, February 13, and February 20.
This move comes just ahead of the Union Budget on February 1 and the Reserve Bank’s key MPC meeting between February 5 to 7, which adds to the market’s positive outlook.
“The national benchmark indices demonstrated optimism today, primarily driven by gains in the banking sector following the RBI’s announcement of open market interventions to address liquidity concerns. Large-cap stocks outperformed, as their valuations have now reached fair levels and are further supported by expectations that the market correction is nearing its bottom. In contrast, mid- and small-cap stocks continued to decline, as they remain overvalued. However, volatility is expected to remain elevated in the near-term in anticipation of the upcoming Union Budget, the FOMC meeting, and the F&O expiry,” added Vinod Nair, Head of Research, Geojit Financial Services.
Top gainers and losers
As of the market close, Sensex saw strong gains today, led by significant advances in Bajaj Finance, Axis Bank, Bajaj Finserv, HDFC Bank, Tata Motors, and Tata Steel. However, some heavyweight stocks in the index faced declines, with TCS, ITC, HCL Technologies, Nestle India, PowerGrid, NTPC, L&T, and Sun Pharma all ending in the red.
In today’s trading session, the top gainers in the Nifty 50 included key players from the financial sector, with Bajaj Finance, Axis Bank, Shriram Finance, Bajaj Finserv, and HDFC Bank leading the charge. On the other hand, the session saw declines in stocks such as Sun Pharma, Britannia, Hindalco, Grasim, and BEL, which closed lower
Sectoral indices
The Nifty Midcap 50 index closed at 14,341.40, down by 0.59%, while the Nifty Midcap 100 index finished at 51,529.45, falling by 0.51%. The Nifty Smallcap 50 index closed at 7,649.10, down by 1.94%.