As of January 31, 2025, the Indian stock market has continued its upward trajectory, with the BSE Sensex closing up 740.76 points at 77,500.57 and the Nifty gaining 258.91 points to reach 23,508.40. This marks the fourth consecutive day of gains for the indices, driven by pre-Budget optimism and positive corporate earnings reports [478e53fa]. The market capitalization of BSE-listed companies increased significantly by ₹5.47 lakh crore, bringing the total to ₹423.34 lakh crore [478e53fa].
Key contributors to this rally included strong performances from major companies such as Nestle India and L&T, which saw their shares rise by 7.6% and 4.4%, respectively, following robust Q3 earnings [478e53fa]. Additionally, Vedanta reported a remarkable 70% year-on-year increase in profit after tax (PAT) to ₹4,876 crore, while Punjab National Bank's PAT surged 103% year-on-year to ₹4,508 crore [478e53fa].
Earlier in the week, on January 30, the market had shown signs of recovery after a challenging period, with the Sensex bouncing back to close at 76,532.96, up 631.55 points, and the Nifty reaching 23,163.10, up 205.85 points [29bac410]. This recovery was attributed to strong buying in stocks like Bajaj Finance and Bajaj Finserv, despite Tata Motors facing a significant drop in net profit for Q3 2024 [29bac410].
The market sentiment was further bolstered by an Economic Survey projecting a growth rate of 6.3% to 6.8% for FY26, which has instilled confidence among investors ahead of the upcoming Union Budget on February 1, 2025 [478e53fa]. However, the Indian rupee hit a record low of 86.65 per dollar amid concerns over US tariffs, adding a layer of complexity to the market dynamics [478e53fa].
As the market navigates these developments, the balance between domestic economic indicators and global factors will be crucial in determining the sustainability of the recent gains [8ed72a4e].