Indian Stock Market on 22.01.25

Indian markets rebounded sharply on January 22, recouping some of the losses from the previous session, which had taken the indices to a seven-month low. The Nifty 50 closed 130.75 points higher at 23,155, up 0.57%, while the Sensex rose 566 points to close at 76,404, up 0.75%. The day’s recovery was led by market heavyweights Infosys, HDFC Bank and TCS, as well as gains in pharma stocks, which helped lift sentiment on Dalal Street. However, the rebound was largely confined to large-cap stocks. Mid- and small-cap stocks remained under pressure due to lingering concerns over weak earnings and lofty valuations. The Nifty Midcap 100 fell 1.34% to close at 53,113, while the Nifty Smallcap 100 declined 1.63% to close at 17,172.

HDFC Bank’s quarterly results provided a major boost, with the stock up 1.5% in the last hour of trade. This, coupled with a 2.1% gain in IT stocks, helped push the benchmark indices into positive territory after a largely cautious trading session. Analysts attribute the IT rally to renewed optimism over US investment in AI infrastructure and relatively lower valuations in the sector after trade policy concerns weighed on the segment earlier.

Foreign portfolio investors (FPIs) continued to sell off $7 billion worth of Indian stocks and bonds in January, underscoring broader market uncertainty. Gold prices in India were unchanged on Wednesday, with 24-karat gold at ₹8,141.3 per gram and 22-karat gold at ₹7,468.3 per gram. Over the past month, 24-karat gold has fallen 4.5%, while silver was steady at ₹99,500 per kg. Oil prices were marginally lower on Wednesday, as geopolitical tensions and US tariff policies weighed on sentiment. Brent crude fell 0.5% to $78.93 a barrel, while WTI fell 0.6% to $75.37. Despite the short-term decline, Citi revised its average oil price forecast for 2025 upward, citing potential geopolitical risks in Russia and Iran. The bank now expects Brent crude prices to average $67 a barrel in 2025, up from its previous estimate of $62, while forecasting WTI prices to average $63 a barrel.