Sensex, Nifty rally on the back of Kotak Mahindra Bank stock surge; Nifty Bank leaps 810 pts

Equity markets kicked off the week on a robust note, with the BSE Sensex closing at a high of 77,073.44, up 454.11 points or 0.59 per cent, while the broader Nifty 50 gained 141.55 points or 0.61 per cent to end at 23,344.75. The rally was primarily driven by Kotak Mahindra Bank’s stellar performance, which soared 9.06 per cent following better-than-expected quarterly results.

“A robust initial set of earnings from the banking and financial sectors triggered a broad-based rally, driven by the likelihood of improved earnings in the near future,” said Vinod Nair, Head of Research at Geojit Financial Services. However, he cautioned that “uncertainties surrounding Trump’s policies continue to linger” and “oil prices remaining high is another key concern.”

The banking sector emerged as the day’s top performer, with the Nifty Bank index surging 810.20 points or 1.67 per cent to close at 49,350.80. Following Kotak Mahindra Bank’s lead, other financial stocks also posted significant gains, with Bajaj Finance and Bajaj Finserv rising 3.42 per cent and 3.35 per cent, respectively.

Technology stocks also contributed to the market’s upward momentum, with Wipro recording a substantial gain of 6.58 per cent after posting strong quarterly numbers. NTPC rounded out the top gainers with a 2.70 per cent increase.

On the flip side, insurance stocks faced selling pressure, with SBI Life declining 2.82 per cent and HDFC Life dropping 1.34 per cent. Other notable losers included Trent (-2.20 per cent), Shriram Finance (-1.98 per cent), and Adani Ports (-1.29 per cent).

Market breadth remained positive, with 2,503 stocks advancing against 1,557 declines on the BSE. The session saw 115 stocks touching their 52-week highs, while 75 hit their 52-week lows. Ten stocks hit the upper circuit, while two touched the lower circuit.

Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, noted that “optimism across most of the Asian and European markets ahead of Trump taking charge as the US President today weighed positively on Indian benchmarks.” He added that “local investors will be more focused on the Union Budget to be announced on February 1.”

The broader market also showed strength, with the Nifty Midcap Select index gaining 106.65 points or 0.87 per cent to close at 12,356.50. The Nifty Next 50 index edged up marginally by 52.55 points or 0.08 per cent to end at 65,106.15.

Technical analysts remain cautiously optimistic about the market’s trajectory. Shrikant Chouhan, Head of Equity Research at Kotak Securities, observed that “on daily and intraday charts, it has formed a higher bottom formation, which supports a further uptrend from the current levels.” He identified 23,170 as a crucial support level for the Nifty.

Looking ahead, Ajit Mishra, SVP Research at Religare Broking Ltd, recommended “exercising caution with aggressive positions and awaiting greater clarity” as markets appear to be consolidating following the recent decline. He emphasized that while budget-related themes are attracting selective buying interest, developments following Trump’s inauguration will be closely monitored for potential cues.