Ahead of Market: 10 things that will decide stock market action on Wednesday
financial stocks. The rally came after the Reserve Bank of India announced several measures aimed at enhancing liquidity in the banking system, fueling optimism about a potential interest rate cut in February.
The benchmark BSE Sensex gained 535.24 points or 0.71% to close at 75,901.41, while the broader Nifty 50 index closed at 22,957.25, higher by 128.10 points or 0.56%.
Here's how analysts read the market pulse:
The national benchmark indices demonstrated optimism today, primarily driven by gains in the banking sector following the RBI's announcement of open market interventions to address liquidity concerns, said Vinod Nair, Head of Research at Geojit Financial Services, adding that large-cap stocks outperformed, “as their valuations have now reached fair levels and are further supported by expectations that the market correction is nearing its bottom.“
“In contrast, mid- and small-cap stocks continued to decline, as they remain overvalued. However, volatility is expected to remain elevated in the near-term in anticipation of the upcoming Union Budget, the FOMC meeting, and the F&O expiry," Nair added.
US markets
The S&P 500 seesawed on Tuesday as gains in megacap stocks, including Apple, helped offset losses triggered by mixed corporate earnings. Apple rose 2.5%, lending support to the Nasdaq after Monday's declines, while most other megacap stocks also edged higher.
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