The BSE Sensex concluded the trading at 76,404 points, 0.75% higher than Tuesday’s close, while the Nifty 50 completed the day 130.75 points higher, or 0.57% higher, to settle at 23,155 points.
Stock Market Today:
Following a severe sell-off that sent the front-line indexes to a seven-month low in the previous session, Indian markets saw a significant recovery in Wednesday’s trading session, January 22.
The BSE Sensex closed the day at 76,404, up 0.75% or 566 points from Tuesday’s closing, while the Nifty 50 concluded the day 130.75 points higher, or with a gain of 0.57%, at 23,155.
Due to strong purchasing momentum during the session, major players, including Infosys, HDFC Bank, and TC, S, were the main drivers of today’s rebound on Dalal Street. Pharma stocks also helped the markets conclude higher by supporting the rise.
Large-cap stocks recovered, but selling pressure on mid-and small-cap companies mid-and for the second straight day due to worries over valuation and poor results. The Nifty Smallcap 100 index saw further selling pressure, closing with a fall of 1.63% at the 17,172 level, while the Nifty Midcap 100 index fell 1.34% to 53,113.
Meanwhile, the sell-off in EMS equities continued into today’s trading, with Kaynes Technologies seeing an additional 11% decrease following a 10% plunge on Tuesday. Dixon Technologies, PG Electroplast, and Amber Enterprises India were among the other EMS stocks, with a 7% decline during today’s trading session.
On Dalal Street, the once-soaring EMS stocks—which rose without seeming to reach a ceiling—are currently under constant selling pressure. Since Q3FY25 profits fell short of forecasts, investor sentiment toward the industry appears to have worsened.
Vinod Nair, Head of Research at Geojit Financial Services, commented on today’s market performance: “After a major private bank reported better-than-expected earnings, the benchmark indexes recovered despite increased volatility. Due to valuation worries, mid- and small-cap stocks continued to underperform, while the IT sector led advances after recent losses.
“Most industries reported losses, with the real estate industry suffering the most for several days, except finance and IT. Although there may be some short-term respite from the news that the US is considering lowering tariffs on China, there are still underlying issues. According to Vinod Nair, the rupee’s fall may be stopped by a slowdown in the dollar index.
With 50–60% of their income coming from the US, Indian IT businesses stand to gain from President Donald Trump’s drive to increase investment in artificial intelligence, which is why IT equities have significant buying momentum in today’s trading.
On Tuesday, Trump declared that the United States will invest billions of dollars to develop artificial intelligence infrastructure. The Nifty IT index rose 2.14% to 42,590 points against this background.
Indian IT equities saw a significant upswing from January 2017 to January 2021, during Donald Trump’s first term in office. The broader Nifty 50 gained 60% during the same period, but the Nifty IT index produced an impressive 150% return.
Because of his proposed corporate tax cut and other economic initiatives that might increase discretionary spending in the US, experts think that Indian IT companies could also profit from his second term. For the December quarter, the most recent earnings from leading US investment banks, including JP Morgan and Goldman Sachs, again exceeded projections.
Other sector indexes, including Nifty Private Bank and Nifty Pharma, saw increases of up to 0.70% as the session ended. Conversely, Nifty Realty dropped 4.56% further to reach a 10-month low of 865, continuing its downward trend for the second day. The index has now corrected 18% in January, the most significant monthly decline since March 2020 due to today’s decline.
Nifty 50: Important Levels and Patterns
On Wednesday, the Nifty took support close to its previous session low of 22,980 and formed a hammer tweezer bottom candlestick on the daily chart, indicating a possible rebound toward 23,350 levels following Tuesday’s fall, according to Vatsal Bhuva, Technical Analyst at LKP Securities.
However, there will be persistent positive momentum if the Nifty closes above 23,500, where the 21-day EMA is located. A careful approach is recommended till then. With 23,000 offering solid support and the 23,350–23,400 zone serving as a crucial barrier for the index, short-term traders can concentrate on the 23,000–23,350 area,” he continued.
“The benchmark indices saw a recovery from lower levels today, with the Nifty ending 131 points higher and the Sensex up 567 points,” stated Shrikant Chouhan, Head of Equity Research at Kotak Securities. Technically, the market established support close to 23000/75850 during the intraday dip and recovered quickly. Nonetheless, the market’s short-term trend is still poor.
“23000/75850 would be an essential support zone for day traders. The pullback formation will likely continue if the index remains above this level. On the upside, the market may recover to the 23250–23325/76700–76900 level. The feeling may drop to 22900-22880/75600-75500 if it drops below 23000/75850, on the other hand, according to Shrikant.
