Today’s Explosive Market Rally Unveiled: Sensex Soars an Astonishing 750 Points, Nifty 50 Rockets Near 23,000 And Crucial Factors Behind

The Indian stock market rebounded over 1% on January 28, led by banking and financial stocks after RBI announced liquidity measures, including ₹60,000 crore in government securities purchases and a forex swap auction. Despite global tech sell-offs due to China’s DeepSeek AI launch, Sensex and Nifty surged, driven by fair valuations, pre-budget optimism, and strong investor sentiment.
Stock Market Performance:
Indices’ Rise:
- SENSEX: Closed at 76,110.82 (+744.65 points, +0.99%).
- NIFTY50: Closed at 23,011.65 (+182.50 points, +0.8%).
- Banking and financial stocks led the rally with significant contributions from HDFC Bank, ICICI Bank, and Axis Bank.
Sectoral Highlights:
- The BSE Bankex index climbed to 55,786.86 (+1.98%).
- The BSE Financial Services index surged to 10,835.31 (+1.70%).
- Midcaps underperformed with only a 0.5% gain, while smallcaps declined over 1%.

Driving Factors:
RBI’s Liquidity Measures:
- RBI announced the purchase of government securities worth ₹60,000 crore through Open Market Operations (OMOs) in three tranches (January 30, February 13, February 20).
- A $5 billion USD/INR buy/sell swap auction is scheduled for January 31, 2025.
- Although other steps, like as a 50 basis point CRR drop, may be required, analysts say these steps are intended to address the present ₹3 lakh crore liquidity shortage.
Banking Sector Rally:
- Strong performance by key banking heavyweights.
- Rate-sensitive stocks like LIC Housing Finance and Bajaj Finance also saw significant gains.
Rebound in Oversold Market:
- Following two days of losses and oversold conditions, the market rebounded.
- Correction-driven valuations now align with long-term averages, spurring selective buying in quality large-cap stocks.
Pre-Budget Sentiment:
- Optimism around the Union Budget 2025, with expectations of measures to boost consumption and private investments.
Limited Impact of DeepSeek AI Development:
- Although the global tech market reacted negatively to the announcement of China’s DeepSeek R1 AI assistant, Indian markets remained resilient.
- Analysts dismissed the likelihood of a significant impact on Indian stocks.
Expert Opinions:
- Valuation Insights:
- Analysts note that current valuations, post-correction, present investment opportunities in fundamentally strong stocks.
- Large-cap stocks are favored over mid- and small-caps.
- Technical Outlook:
- Resistance levels for the Nifty are at 23,128 and 23,211.
- A consolidation phase is underway, and any sharp surge is considered unlikely in the short term.
- Growth Expectations:
- Experts anticipate pro-growth policies in the budget to revive demand and stabilize market sentiment.
Conclusion
Following the Reserve Bank of India’s aggressive liquidity measures, the article emphasises a notable recovery in the Indian stock market, which was driven by banking and financial firms. In order to increase liquidity and investor trust, they included buying government assets and holding an FX swap auction. Strong valuations and pre-budget confidence propelled Indian indexes up despite global risks, such as tech sell-offs after China’s DeepSeek AI debut. Resilient markets expect sustained growth with positive policy initiatives and reflect underlying economic confidence. Thanks to a strong banking sector and effective regulatory actions, investors continue to have high hopes for the domestic economy. Follow us for further updates.