Stock markets snap 2-day falling streak, banking shares shine on RBI liquidity move

Mumbai, Jan 28 (PTI) Snapping the two-day decline, benchmark stock indices Sensex and Nifty rebounded on Tuesday following intense buying in banking and rate-sensitive stocks as the RBI decided to inject liquidity into the financial system.

The 30-share Sensex climbed 535.24 points or 0.71 per cent to settle at 75,901.41. During the day, the benchmark surged 1,146.79 points or 1.52 per cent to hit a high of 76,512.96.

The broader 50-share NSE Nifty appreciated by 128.10 points or 0.56 per cent to close at 22,957.25. In the intraday session, the 50-share NSE Nifty climbed 308.8 points or 1.35 per cent to 23,137.95.

"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," Vinod Nair, Head of Research, Geojit Financial Services, said.

Among the Sensex shares, Bajaj Finance, Axis Bank, Bajaj Finserv, HDFC Bank, Tata Motors, Tata Steel, ICICI Bank, Mahindra & Mahindra, Zomato, IndusInd Bank, Maruti Suzuki India and Bharti Airtel were the major gainers.

Sun Pharmaceutical, Larsen & Toubro, ITC, HCL Technologies, NTPC, Power Grid, Nestle India, Tata Consultancy Services, and Asian Paints were among the laggards.

"Markets witnessed a relief rally after the recent weakness, but undertone remained bearish as most of the sectors ended in red which pulled down benchmark indices from the day's high levels," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

Investors remain cautious due to growing global uncertainty and disappointing domestic economic indicators.

However, optimism in banking, auto and realty aided sentiment even as worries over Trump's trade policies and fading chances of any rate cut in next month's credit policy weighed, Tapse added.

Among the sectoral indices, Bankex climbed the most by 1.49 per cent, Financial Services by 1.45 per cent, Realty by 1.27 per cent, Auto by 1.16 per cent, and Consumer Discrectionary rose by 0.23 per cent.

Healthcare, Industrials, Utilities, Capital Goods, Power, Oil & Gas, Energy, IT and Focused IT were among the laggards.

In the broader market, Aditya Birla Sun Life AMC shares declined 4.82 per cent to close at Rs 612.30 apiece on BSE after the company's December quarter earnings failed to cheer investors.

Shares of Anant Raj depreciated by 20 per cent to close at Rs 534.45 apiece -- also its lower circuit level -- on the bourse.

The scrip plunged after China's disruptive low-cost AI-startup DeepSeek threatened the dominance of US artificial intelligence (AI) companies such as Nvidia and triggered a rout among global tech stocks.

Real estate company Anant Raj, last year in July, has diversified into the data center and AI solutions space through its arm, Anant Raj Cloud after partnering with Google.

Despite, the markets settled on a positive note, 2,666 shares declined, 1,308 advanced and 110 stocks remain unchanged. The market capitalisation of BSE-listed companies fell Rs 1,30,328.02 crore to Rs 4,09,00,871.46 crore or USD 4.73 trillion.

In Asian markets, Tokyo ended in the negative territory and Hong Kong in the green. Meanwhile, markets in Seoul and Shanghai were closed for the holidays.

European markets traded higher in the early session with Britain's FTSE 100 rising 0.55 per cent, Germany's DAX by 0.44 per cent, and the CAC 40 in Paris by 0.33 per cent.

US markets ended lower on Monday.

Global oil benchmark Brent crude went up 0.62 per cent to USD 77.56 a barrel.

On Monday, the 30-share BSE barometer plunged by 824.29 points to close at 75,366.17, while the broader 50-share Nifty dropped by 263.05 points to close at 22,829.15. PTI HG MR MR MR

Source: PTI