Indian markets rally as IT and banking stocks drive gains; broader markets see strong recovery ahead of the Federal Reserve’s rate decision.
January 29, 2025: Indian stock markets extended their rally for a second consecutive session on January 29, fueled by robust buying in IT and banking stocks. Broader markets also rebounded sharply, supported by value-buying across midcaps and smallcaps, as investors awaited the Federal Reserve’s rate decision.
Also Read: Delhi Airport’s Revenue Transformation: More Mall Than Terminal
The Nifty 50 rose by 213.50 points, or 0.93%, to close at 23,170, while the BSE Sensex gained 682 points, or 0.90%, ending the day at 76,583. In the broader market, the Nifty Midcap 100 surged 2.32% to 52,724, and the Nifty Smallcap 100 outperformed with a sharp 3.32% rise, closing at 16,540.
IT and Banking Stocks Lead the Charge
Indian IT stocks rebounded strongly, following a tech-driven recovery in Wall Street markets. This came after concerns eased over a competitive artificial intelligence model introduced by Chinese startup DeepSeek. The Nifty IT index climbed 2.61% to 42,913, marking its largest single-day gain since January 10.
Also Read: Proposed Joint Tax Filing in Budget 2025: A Boon for Married Couples?
Banking stocks also saw sustained buying interest, bolstering the overall market sentiment.
Focus Shifts to Federal Reserve Decision
Investors now await the Federal Reserve’s rate decision, which is expected later in the day. While markets widely anticipate that the Fed will hold rates steady, attention is centered on Chair Jerome Powell’s commentary, particularly regarding the central bank’s response to calls for rate cuts from President Donald Trump.
This meeting holds additional significance as it is the first Fed policy review since Donald Trump assumed office for his second term as U.S. President.
Market Outlook
The strong recovery across segments highlights renewed investor confidence, with midcap and smallcap stocks reclaiming lost ground. Key developments from the Federal Reserve meeting are expected to shape market trends in the near term.
Tags: Nifty 50, Sensex, Indian Stock Market, IT Stocks, Banking Stocks, Smallcap Rebound, Federal Reserve Decision, Jerome Powell, Donald Trump, Market Rally, Midcap and Smallcap Growth