Sensex Soars 487 Points, Nifty Reclaims 25,300

The mood on Dalal Street was clearly upbeat with the anticipated EU trade “mother of all deals” realising. The deal was the biggest news of the day. It scrapped tariffs on >90% of Indian goods. This led to heavy buying in export-oriented and industrial stocks. The broader market participation was strong, but the rupee was a point of slight concern. The Indian rupee underperformed its Asian peers due to month-end dollar demand.

By the closing bell, the bulls were clearly in charge. The market added ~₹2.9 lakh Cr. to investor wealth in a single session.

The Sensex ended 487.20 points (0.60%) higher at 82,344.68, while the Nifty 50 climbed 167.35 points (0.66%) to close at 25,342.75.

A Broader Recovery

Different from the recent sessions where only a few heavyweights moved the index, today’s rally was broad-based.

The Midcap and Smallcap indices rose 1.7% and 2.3%, respectively. This shows that investors are hunting for value beyond just the top companies.

Furthermore, 13 out of 16 major sectors registered gains. The gains were not only limited to the financial sector. Energy (+4.2%) and Metals (+2.3%) did the heavy lifting. This rally was supported by rising commodity prices. The Nifty PSE and Nifty CPSE indices saw considerable inflows as investors anticipate budget-related announcements for state-owned enterprises.

The Defence index soared a massive 7%. However, the FMCG (Fast Moving Consumer Goods) and Consumer Durables sectors saw some profit-booking as investors shifted capital toward cyclical sectors like metals and oil & gas.

Of the top gainers, Bharat Electronics hit a record high today on the back of strong profit growth.

Key Stock and Corporate Updates

Earnings season is in full swing, creating sharp moves in individual stocks.

• Maruti Suzuki- The stock fell after missing Q3 profit estimates. The company took a one-time hit due to changes in labour codes (laws regarding employee benefits). The sales were good, but this one-off charge disappointed investors slightly.

• TVS Motor - The stock rose considerably after reporting a strong 49% jump in Q3 net profit, driven by solid sales volume.

• Asian Paints - The stocks dropped considerably as volume growth (the actual number of paint cans sold) remained subdued, signalling that demand in the housing décor space might be cooling off a bit.

• Vedanta - The company announced it will sell a small stake (1.59%) in its subsidiary Hindustan Zinc via an OFS (Offer for Sale).

• ACC - The company reported a 50% fall in standalone net profit to ₹541.40 Cr. compared to last year.

• SBI Life - The life insurance major posted a steady Q3 net profit of ₹576.74 Cr. This was up from ₹550.82 Cr YoY.

Global Context and Commodities

• Geopolitics and Davos - At the World Economic Forum, US President Donald Trump cooled geopolitical nerves by softening his stance on Greenland and ruling out immediate tariff threats against Europe. This "global relief" supported the positive opening in Asian markets.

• Gold and Silver Records - Driven by a weakening US dollar and safe-haven demand, gold hit a fresh peak of ₹1.62 lakh/10g, while silver futures soared over 7% to hit a lifetime high of ₹3.83 lakh/kg.

• US Fed Meeting - Investors are hyper-focused on the US Federal Reserve meeting beginning tonight. While interest rates are expected to stay steady at 3.50%–3.75%, the market is waiting for Chair Jerome Powell’s guidance on the 2026 outlook.

Investor Takeaway

Technically, market action on 28 January formed a "reasonable bull candle" on the daily charts. The market chart indicates a continuation of the pre-budget rally. A bull candle occurs when the closing price is higher than the opening price. It shows that buyers were in control.

The market seems to be favouring specific themes, such as defence, PSUs (Public Sector Undertakings), and metals, rather than a blind rally. With the budget approaching, volatility might remain high. Investors need to remain cautious with the higher ongoing market volatility.

Source:

NSE

Economic Times

ZEEBIZ

Business Standard

Moneycontrol

The Hindu BL