Stock market today: On Monday, January 29, the domestic equity market witnessed widespread buying, propelling key indices—the Sensex and the Nifty 50—to soar by nearly 2 per cent each. This surge was attributed to positive global cues.
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Pre-Budget Volatility and Global Factors
The market is currently experiencing strong volatility ahead of the Interim Budget 2024. On Monday, the Volatility index India VIX jumped 13 per cent. Investors are closely monitoring the US Fed policy decision on January 31 and Fed Chair Jerome Powell’s commentary, as these factors contribute to market dynamics.
Impact of Upcoming Events on Market Sentiment
Budget and Fed Meeting Overview
Despite the upcoming Interim Budget on February 1 and the US Fed meeting, market sentiment is expected to remain largely unaffected. The Budget is anticipated to be a Vote on Account ahead of the General Elections 2024, with no major announcements expected. Similarly, the US Fed is expected to maintain a pause on interest rates, and although a rate cut is not anticipated, experts are hopeful for a dovish stance from the Fed Chair.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “Two important events are due this week: the interim Budget and the Fed meeting on rate decision. But these events are unlikely to impact the market in a big way.”
Stock market today : Market Performance and Highlights
Nifty 50 and Sensex Movement
Nifty 50 opened at 21,433.10 and reached an intraday high of 21,763.25, closing with a gain of 385 points, or 1.80 per cent, at 21,737.60. The Sensex opened at 70,968.10, touched an intraday high of 72,010.22, and ended 1,241 points, or 1.76 per cent, higher at 71,941.57.
Notably, only five stocks—ITC, Infosys, JSW Steel, Tech Mahindra, and TCS—ended in the red, while the mid and smallcap indices recorded healthy gains. The BSE Midcap index rose 1.68 per cent, and the Smallcap index ended 1.03 per cent higher.
Market Capitalization Growth
The overall market capitalization of BSE-listed firms rose to nearly ₹377.1 lakh crore from nearly ₹371.1 lakh crore in the previous session, resulting in investors gaining about ₹6 lakh crore in a single session.