Indian benchmark equity indices, Sensex and Nifty50, opened higher on Tuesday, driven by banking stocks after the Reserve Bank of India (RBI) announced measures to inject liquidity into the banking system following a review of current liquidity and financial conditions.
At 1:22 am, the BSE Sensex was up by 892.32 points, or 1.18%, at 76,258.49, while the Nifty50 gained 202.15 points, or 0.89%, trading at 23,031.30.
From the Sensex stocks, Axis Bank, Bajaj Finance, IndusInd Bank, Infosys, HDFC Bank, Zomato, and ICICI Bank opened with gains, while Sun Pharma, M&M, NTPC, Power Grid, and ITC opened with cuts.
On the sectoral front, Nifty Bank and Financial Services opened over 1% higher. Meanwhile, PSU Bank, Realty, Metal, and IT indices also opened in the green.
Among individual stocks, Oriental Rail Infrastructure opened with a 5% upper circuit after the company secured an order worth Rs 575 crore for the manufacturing and supply of 33 rakes of Flat Multi-Purpose Wagons.
Overnight, the US tech-heavy Nasdaq Composite dropped 3%, with AI leader Nvidia sinking 17%. Chinese startup DeepSeek rolled out a free assistant it says uses cheaper chips and less data, raising concerns about US dominance and spending in one of the market’s hottest sectors.
Market Statistics
- Sensex Performance: Closed up by 430 points at around 76,404.99.
- Nifty Performance: Surged above 22,900 to settle at approximately 23,155.35.
- Key Gainers: Infosys, HDFC Bank, TCS, and other IT stocks were among the top performers.
- Sector Performance: The Nifty IT index rose by about 2.14%, while banking stocks also showed strength.
Expert Insights
“The DeepSeek impact on the US stock market in general, and the tech stocks in particular, has turned out to be a reality check for the overvalued stock market. In the medium-term, this is likely to have a sobering effect on markets globally,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“The Indian market appears to be oversold and is set for a rebound. The RBI’s announcement of measures to boost liquidity in the banking system by around Rs 1.5 trillion is positive for the market. This raises the prospect of a rate cut by the MPC in the February policy meeting. Banks are likely to benefit,” Vijayakumar added.
Hardik Matalia, Derivative analyst at Choice Broking, said, “After a positive opening, Nifty can find support at 22,800 followed by 22,650 and 22,500. On the higher side, 23,000 can be an immediate resistance, followed by 23,100 and 23,200.”
Global Markets
U.S. stock futures steadied, the dollar ticked higher, and tech stocks in Asia slid on Tuesday following a wave of selling as apparent advances by a Chinese AI startup cast doubt on U.S. dominance and spending in one of the market’s hottest sectors.
Overnight, chipmaker Nvidia dived 17%, wiping off nearly $593 billion in the biggest market capitalization loss in history.
On Wall Street, the S&P 500 dropped 1.5%. In Europe, the STOXX Europe 600 technology index fell more than 3%, and ASML, which makes chip manufacturing equipment, fell 7%.
- FII/DII Tracker: The Foreign institutional investors (FIIs) sold equities worth Rs 5,015 crore on January 28; on the other hand, domestic institutionals bought equities worth Rs 6,642 crore on the same day.
- Crude Oil: Oil prices hovered near a two-week low on Tuesday after weak economic data from China and warming weather forecasts elsewhere soured the demand outlook.
Brent crude oil futures rose by 12 cents, or 0.2%, to $77.20 per barrel by 0220 GMT. US West Texas Intermediate crude futures were up 10 cents, or 0.1%, to $73.27. Brent settled on Monday at its lowest since Jan. 9, while WTI hit its lowest since Jan. 2.
Rupee Vs Dollar
The Indian rupee fell 24 paise to 86.55 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, rose 0.55% to 107.93 level.