Indian Markets Continue Upward Trajectory, Sensex and Nifty Close Higher

Sensex and Nifty Extend Rally for Third Consecutive Day

The Indian stock market continued its positive momentum for the third day in a row, with both the Sensex and Nifty closing higher on Thursday, January 30, 2025. This upward trend was fueled by strong buying activity in heavyweight stocks like Reliance Industries, Bharti Airtel, and HDFC Bank.

The 30-share Sensex saw a volatile trading session but ultimately gained 226.85 points (0.30%) to settle at 76,759.81. It even touched an intraday high of 76,962.88, showcasing the market's bullish sentiment. The NSE Nifty followed suit, rising by 86.40 points (0.37%) to close at 23,249.50.

Key Performers and Laggards

Among the top gainers in the Sensex were Bharti Airtel, Power Grid, Bajaj Finance, Nestle, Mahindra & Mahindra, Reliance Industries, Asian Paints, IndusInd Bank, Hindustan Unilever, and HDFC Bank. These strong performances contributed significantly to the overall market upswing.

However, not all stocks shared in the rally. Tata Motors experienced a significant drop, tanking over 7% after reporting a 22% decline in consolidated net profit for the December quarter. Other laggards included ITC Hotels, Bajaj Finserv, Adani Ports, Tech Mahindra, Zomato, and Kotak Mahindra Bank.

Market Analysis and Future Outlook

Despite the fluctuating nature of the trading day, the Indian markets ultimately closed on a positive note. Several factors contributed to this outcome, including falling oil prices due to rising US inventories and an easing of the US 10-year yield following the US Fed's hawkish stance.

Vinod Nair, Head of Research at Geojit Financial Services, offered his insights on the market's performance:

"The Indian markets concluded on a positive note despite fluctuating between gains and losses. The fall in oil prices due to a rise in US inventories and an ease in US 10-year yield after the US Fed’s hawkish view may decelerate FIIs outflow. The upcoming budget may be seen as an inflection point, which is likely to reverse the current bearish trend if the policies restore growth and consumption."

The upcoming budget is anticipated to play a crucial role in shaping market sentiment and could potentially reverse any existing bearish trends if the proposed policies effectively stimulate growth and consumption.