Stock market today: RIL, HDFC Bank drive Nifty 50, Sensex higher for 3rd day; PSU stocks hog limelight

Stock Market Today: Indian stock markets maintained their winning streak for the third consecutive trading session on Thursday, January 30, as strong support from heavyweight stocks such as Reliance Industries, HDFC Bank, and Bharti Airtel kept the momentum going.

Additionally, the strong comeback from real estate and pharma sectors also supported the markets in staying higher, while IT stocks saw some profit booking following a healthy rally in recent sessions.

Despite the US Fed pausing its rate-cutting cycle in its January meeting, following three straight cuts since September 2024, Fed Chair Jerome Powell suggested during the post-meeting press conference that progress toward controlling inflation was being made, signaling that there may still be room for future rate cuts.

The Nifty 50 ended the session with a gain of 0.37% at 23,249, while the Sensex closed at 76,759, marking a 0.30% increase from the previous close. The Nifty Smallcap 100 index rose 0.12% to 16,560, while the Nifty Midcap 100 index concluded the day with a mild drop of 0.01%, closing at 52,714.

PSU stocks emerged as top performers, with the Nifty PSE index ending the session with a gain of nearly 2%. Eighteen out of twenty constituents of the index ended the session in the green, with IRFC emerging as the top gainer, up by 4.6%, followed by Bharat Electronics and Power Finance, which gained 4.3% and 3.7%, respectively. 

Analysts believe the market’s continued rally will hinge on the upcoming Union Budget, with expectations that the government will prioritize capital spending while also taking steps to stimulate consumption recovery. To achieve this, there is growing talk of providing income tax relief for salaried taxpayer. 

Commenting on today’s market performance, Vinod Nair, Head of Research, Geojit Financial Services, “The Indian markets concluded on a positive note despite fluctuating between gains and losses. The fall in oil prices due to a rise in US inventories and an ease in US 10-year yield after the US Fed’s hawkish view may decelerate FIIs outflow.”

“The upcoming budget may be seen as an inflection point, which is likely to reverse the current bearish trend if the policies restore growth and consumption. As the long-term story is intact, investors are focusing on stocks and sectors where operational metrics and valuations are favourable,” he added.

Tata Motors, Voltas hit hard as Q3 results disappoint

Tata Motors and Voltas witnessed a significant drop in their share prices after both companies reported weak financial results for the December quarter, missing street estimates.

Tata Motors shares fell 7.4%, hitting a 14-month low of ₹683 apiece after the company reported a 22.5% decline in its consolidated net profit. Profitability was impacted by weak domestic sales and margin pressure in the JLR segment.

Voltas share price dropped nearly 14%, hitting a 7-month low of ₹1,262 per share, due to margin contraction in the core unitary cooling products segment and market share loss in the sub-segment of room air conditioners in Q3.

Nifty 50: Technical outlook

Rupak De, Senior Technical Analyst at LKP Securities, said, “The Nifty remained volatile within a defined range on expiry day. The daily RSI is in a bullish crossover, signifying strong momentum. However, the index is facing resistance near the upper boundary of the falling wedge as well as the 21EMA on the daily timeframe, suggesting a possible retracement in the near term. Support is seen at 23,200, and a break below this level could trigger a decline towards 23,000. On the other hand, a decisive move above 23,300 might push the index towards 23,500.”

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates, said, “Technically, Nifty formed a green candle on the daily chart, indicating strength, with immediate resistance near 23,340, where the 21-Days Simple Moving Average (21-DSMA) is placed, and strong support at 23,000. As long as Nifty holds above 23,000, a short-term pullback toward 23,340 and 23,500 remains possible, favoring a buy-on-dips strategy.”

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.