Markets open higher as Fed holds rates; Bajaj Finance leads gainers
The Sensex opened slightly higher at 76,598.84 compared to its previous close of 76,532.96 and is currently trading at 76,575.57, up by 42.61 points or 0.06 per cent and the Nifty opened at 23,169.50 against its previous close of 23,163.10 and is now at 23,206.65, gaining 43.55 points or 0.19 per cent as investors digested the U.S. Federal Reserve’s decision to keep interest rates unchanged at 4.25-4.5 per cent.
Bajaj Finance emerged as the top gainer on the NSE, surging 4.64 per cent, followed by Bajaj Finserv at 3.33 per cent and Hindalco at 2.27 per cent. Dr. Reddy’s and Bajaj Auto also showed strength, adding 1.74 per cent and 1.70 per cent respectively. On the flip side, Tata Motors led the losses, falling 7.78 per cent, while IT majors Infosys and Wipro declined 0.65 per cent and 0.40 per cent respectively.
“The Fed’s decision to maintain rates was widely expected, but the removal of language suggesting progress on inflation indicates a more hawkish stance,” said Deepak Agrawal, CIO-Debt at Kotak Mutual Fund. He added that the strong job market and slightly elevated inflation levels influenced the Fed’s cautious approach.
Market sentiment remains cautious ahead of India’s Union Budget 2025, scheduled for next week. “The anticipation around the Union Budget has kept the market busy in the last few sessions, with stock-specific movements indicating value-buying opportunities,” noted VLA Ambala, Co-Founder of Stock Market Today.
Foreign Institutional Investors (FIIs) continued their selling streak for the 19th consecutive session, offloading equities worth ₹2,586 crore on January 29, while Domestic Institutional Investors (DIIs) remained net buyers at ₹1,792.71 crore.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented, “The recovery in the market is healthy since it is being led by fairly valued largecaps. The rally can sustain if the Budget comes up with strong growth-stimulating measures.”
Technical analysts maintain a cautiously optimistic outlook. “The Nifty-50 is making higher bottoms and higher top formation on daily charts,” said Vikas Jain, Head of Research at Reliance Securities, suggesting potential for further upside movement.
In the commodities space, gold and silver showed mixed trends following the Fed decision. “Gold prices slipped from session highs as the U.S. Fed shows concerns about inflation,” reported Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
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The market’s immediate focus now shifts to the upcoming monetary policy meeting of the Reserve Bank of India, scheduled for February 7. “Economists expect the RBI to commence the rate easing cycle with a 25-basis point rate cut,” according to Ameya Ranadive, Senior Technical Analyst at StoxBox.
The INDIA VIX, a volatility indicator, traded at 18.64, up 2.45 per cent from the previous session, suggesting increased market uncertainty ahead of key events.
