The stock markets are attempting a strong rally to recover from the shocks of the previous week. As of 10:40 AM, the S&P BSE Sensex climbed more than 800 points to stand at 71,516.55, while the NSE Nifty50 was trading at 21,610.45, after gaining over 250 points.
The Indian rupee depreciated 4 paise to touch 83.15 against the US dollar in the morning session on Monday, as crude oil prices surged and dollar demand from importers remained elevated. Forex traders noted that the domestic unit is trading in a narrow range owing to the support from domestic equities, however, it was negated by foreign fund outflows.
At the interbank foreign exchange, the Indian currency opened at 83.14 against the American dollar, and then fell to 83.15, marking a fall of 4 paise from the previous close. In the last trading session on Thursday, the domestic unit appreciated 1 paisa to settle at 83.11 against the greenback.
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Sensex jumps 503.47 points to 71,204.14 points in early trade; Nifty climbs 178.55 points to 21,531.15 points
The stock markets opened Monday with a strong rally. In early trade, the BSE Sensex climbed over 500 points to cross the 71,000 mark and touched 71,204.14, while the NSE jumped nearly 200 points to cross 21,500 and reached 21,531.15 in the morning.
After opening, the markets continued to trade in an upward trajectory. As of 10:08 AM, the Sensex was trading higher by over 600 points at 71,366.99, while the Nifty50 gained over 200 points and stood at 21,563.45.
In the last trading session on Thursday, the markets attempted a recovery and closed in the red amid profit booking in large and mid-cap stocks and monthly F&O expiry. The S&P BSE Sensex lost 360 points to close at 70,701. On the other hand, the NSE Nifty50 settled at 21,353, down 101 points. The two indices hit intra-day lows of 70,319 and 21,247, respectively.
Among major macroeconomic announcements lined up for the week is the Interim Budget set to be released on February 1 by Finance Minister Nirmala Sitharaman. While the budget being an interim one is not expected to bring in big changes, analysts anticipate some policy revisions keeping in mind the populist view.
Additionally, the US Fed is going to review the interest rate policy in the Federal Open Market Committee meeting, scheduled for January 30 and 31. Markets would be looking out for the quarterly earnings set to be released in the week by companies like Bajaj Finserv, Bajaj Finance, Maruti Suzuki India, Titan, and InterGlobe Aviation.
Vinod Nair, Head of Research, Geojit Financial Services, stated that market factors such as policy rate decisions of major nations are expected to impact the markets, and ‘markets are likely to witness stock-specific actions during the ongoing earnings season’.
Santosh Meena, Head of Research, Swastika Investmart Ltd, said, “Budget, earnings, and the US Fed policy will keep the market on its toes. This week is poised to be pivotal, marked by a series of significant events, with the budget taking the centre stage.”