Markets bounce back after falling in early trade

Benchmark indices Sensex and Nifty bounced back after falling in early trade on Thursday (January 30, 2025). Image for representational purposes only.
| Photo Credit: REUTERS

Benchmark indices Sensex and Nifty bounced back after falling in early trade largely due to buying in Bajaj Finance and Bajaj Finserv.

Buying in smallcap and midcap stocks also added to the optimistic trend in equities.

The 30-share BSE benchmark Sensex declined 106.13 points to 76,426.83 in early trade. The NSE Nifty dipped 23.9 points to 23,139.20.

However, soon both the benchmark indices recovered all the early lost ground and were trading higher. The BSE benchmark quoted 104.79 points higher at 76,655.65, while the Nifty traded 64.30 points up at 23,227.40.

From the 30-share blue-chip pack, Tata Motors tanked nearly 8% after the firm reported a 22% fall in consolidated net profit to ₹5,578 crore for the third quarter ended December 2024, impacted by a decline in revenue from its passenger and commercial vehicles divisions.

ITC Hotels, Infosys, UltraTech Cement, ICICI Bank and Titan were the other laggards.

However, Bajaj Finance traded 4.52% higher followed by Bajaj Finserv which climbed over 3%.

Bajaj Finance on Wednesday (January 29, 2025) reported an 18% increase in its consolidated net profit to ₹4,308 crore for the December quarter.

Power Grid, IndusInd Bank, NTPC and Bharti Airtel were also among the gainers.

The BSE smallcap gauge traded 1.35% higher and midcap index quoted higher by 0.88%.

In Asian markets, Tokyo traded in positive territory. Markets in Seoul, Shanghai and Hong Kong were closed due to holidays.

U.S. markets ended lower on Wednesday.

“The recovery in the market is healthy since it is being led by fairly valued largecaps. The rally can sustain if the Budget comes up with some strong growth stimulating measures that can improve the market sentiments too. However, a sustained rally can happen only if the FII selling stops and we get some leading indicators suggesting growth and earnings recovery.

“Globally, the stock markets remain strong mainly due to the resilient U.S. economy and the down trending interest rate cycle in the U.S. The Fed’s decision to pause yesterday was on expected lines,” V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,586.43 crore on Wednesday, according to exchange data.

“The Federal Reserve kept interest rates steady at 4.25%-4.5%, maintaining a cautious ‘wait-and-see’ approach, leaving market sentiments subdued. FIIs continue their selling spree, and attention has now shifted to the Union Budget,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

Global oil benchmark Brent crude dipped 0.05% to $76.54 a barrel.

The 30-share BSE benchmark jumped 631.55 points or 0.83% to settle at 76,532.96 on Wednesday. The Nifty soared 205.85 points or 0.90% to 23,163.10.