Sensex, Nifty rise on IT and banking rally amid focus on India–US trade talks

Mumbai: Stock market benchmark indices, Sensex and Nifty, ended Friday’s session on a positive note, snapping a two-day losing streak on January 16. Gains were led by strong buying interest in information technology (IT) and banking stocks.

The Sensex rose 188 points, or 0.23 per cent, to settle at 83,570.35, while the Nifty added 29 points, or 0.11 per cent, to close at 25,694.35.

From a technical perspective, analysts said the Nifty faces immediate resistance at 25,875, with further hurdles at 26,000 and 26,100. On the downside, key support levels are placed at 25,600 and 25,450. A decisive break below 25,300 could intensify selling pressure and trigger a deeper corrective phase.

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Market sentiment received a boost largely from a sharp rally in IT stocks, with heavyweights such as Infosys, TCS and Tech Mahindra leading the gains.

However, given the prevailing volatility, market participants have been advised to adopt a cautious approach and adhere strictly to stop-loss levels. 

Investors track Q3 earnings season and India–US trade developments

Looking ahead, corporate earnings are expected to be a major driver of market direction. As the results season enters its second week, several large-cap and mid-cap companies across sectors are scheduled to announce their third-quarter numbers.

The initial public offering of Bharat Coking Coal Ltd (BCCL), a subsidiary of Coal India Ltd (CIL), was fully subscribed within minutes of opening for subscription on January 9. The company is scheduled to make its stock market debut on Monday.

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Indian equity markets are expected to remain volatile in the coming week as investors closely monitor December quarter earnings, developments in India–US trade relations and key global economic indicators, particularly from the United States.

Global cues are likely to remain influential, with attention focused on key US economic data, including GDP growth, inflation readings, jobless claims and purchasing managers’ index (PMI) figures.

Additionally, trends in gold and silver prices may impact equity markets. Precious metals have recently come under pressure due to a stronger US dollar and easing geopolitical tensions.

Market experts believe that if gold and silver prices soften further, investors may reallocate funds towards equities, offering some support to the markets.

(With IANS and PTI inputs)