Stock Market Today: Sensex Rises 250 Points, Nifty Around 23,150

Stock Market Today: As of 10 am, the Sensex rose by 265.14 points, or 0.35 per cent, to reach 76,595.15, while the Nifty gained 73.05 points, or 0.32 per cent, to settle at 23,159

Stock Market Today: Mid- and small-cap stocks saw a much-needed rebound, with gains of 1.7 per cent and 1.5 per cent, respectively

Source : ABPLIVE AI

Indian benchmark indices Nifty and Sensex started strong on Tuesday, ending a four-day losing streak, as investors reacted positively to CPI inflation easing to a four-month low of 5.22 per cent. Experts predict further inflation moderation, which could prompt the MPC to reduce policy rates by 25 basis points in February amid signs of slowing growth.

As of 10 am, the Sensex rose by 265.14 points, or 0.35 per cent, to reach 76,595.15, while the Nifty gained 73.05 points, or 0.32 per cent, to settle at 23,159. Advancing shares numbered 2,166, decliners stood at 978, and 118 shares remained unchanged.

As a result, metal and PSU bank stocks emerged as the top gainers, while IT stocks opened in the red, led by HCL Tech’s disappointing Q3 performance. This follows a day after the frontline indices dropped by over 1 per cent each, wiping out Rs 12.39 lakh crore in market capitalisation.

Market analysts suggest that the market is slightly oversold, indicating a potential near-term rebound. However, any recovery is expected to be short-lived due to ongoing challenges, including US 10-year bond yields above 4.7 per cent, uncertainty around Trump's actions after January 20, India's economic slowdown, weak corporate earnings, and a sharp rise in crude prices.

Mid- and small-cap stocks saw a much-needed rebound, with gains of 1.7 per cent and 1.5 per cent, respectively. Aishvarya Dadheech, CIO and Founder of Fident Asset Management notes that while some challenges may persist for mid- and small-caps, the Nifty and large caps might be entering oversold territory. The broader market has had a tough start to the year, already down nearly 10 per cent.

Among sectoral indices, Nifty IT was the sole underperformer, losing over 1 per cent after HCL Tech's disappointing Q3 results. The PSU Bank index broke its four-day losing streak, surging nearly 2 per cent led by SBI and Bank of Baroda. Nifty Realty, which dropped 6 per cent the previous day, rebounded with a 1 per cent gain on January 14. Auto, Nifty Bank, and Oil & Gas sectors also gained 1 per cent each.