The stock market witnessed a strong rebound today, with the Sensex and Nifty climbing to their daily highs, driven by a sharp 2% surge in the Nifty Bank index. The rally came after the Reserve Bank of India (RBI) announced liquidity-boosting measures, sparking optimism about a potential rate cut in February. However, healthcare and FMCG stocks struggled to keep pace, ending the day in the red.
On January 27, the RBI unveiled steps to inject liquidity into the banking system, including bond purchases and dollar/rupee swaps. Analysts see these moves as a possible signal of an upcoming rate cut in February. The measures are expected to infuse around Rs 1.5 lakh crore into the system, addressing months of liquidity strain that had driven up short-term borrowing rates.
Rate-sensitive stocks were among the top gainers following the announcement. HDFC Bank and Axis Bank surged by 3% and 5%, respectively, while LIC Housing Finance, Bajaj Finance, and M&M Financial Services also saw gains ranging between 2% and 5%. Notably, investment firm Greed & Fear increased its portfolio weighting for HDFC Bank to 4%.
The benchmarks opened on a strong note, recovering from a seven-month low hit in the previous session. The earlier sell-off was fueled by weak Q3 earnings, ongoing uncertainty around U.S. President Donald Trump’s trade policies, and consistent foreign fund outflows.
Key Highlights:
- Share market today: Sensex and Nifty rallied, with Nifty Bank leading the charge.
- Bank Nifty: Jumped 2% on hopes of a rate cut.
- Nifty today: Gained momentum, recovering from recent lows.
- BSE Sensex: Climbed higher, driven by banking and financial stocks.
- Nifty 50 today: Showed strong performance, reflecting investor optimism.
While the banking and financial sectors stole the show, healthcare and FMCG stocks failed to join the rally, ending the day with declines. Investors are now closely watching the RBI’s next moves, with expectations of further easing measures in the coming weeks.
Stay tuned for Sensex today live updates and more insights on Nifty 50 today as the market continues to react to global and domestic developments.
