Market Rally Ahead of Interim Budget and US Fed Outcome

Market Rally Ahead of Interim Budget and US Fed Outcome

VoM News Desk | January 31, 2024 | 05:07 PM IST | Breaking News | Follow on Google News

Market Rally Ahead of Interim Budget and US Fed Outcome

Market Rally Ahead of Interim Budget and US Fed Outcome

January 31, 2024:

Nifty 50 closed at 21,725.70, up 204 points (0.95%), and Sensex gained 612 points (0.86%) at 71,752.11, marking strong gains ahead of the Interim Budget 2024 and the US Fed meeting outcome.

Expectations from Interim Budget

Market experts anticipate a Vote on Account in the Interim Budget, with a focus on fiscal consolidation and capital expenditure to sustain growth momentum. While no major announcements are expected, the government’s commitment to economic stability is in focus.

US Fed Policy Outcome

Attention is also on the US Federal Reserve’s policy outcome. Experts anticipate possible rate cuts starting in May or June, considering the resilient US job market and inflation exceeding the Fed’s 2% target.

Market Performance Highlights

• BSE Midcap and Smallcap Indices hit record highs during the session.
• Market Capitalization rose to nearly ₹379.7 lakh crore, gaining nearly ₹4.5 lakh crore in a single session.
• January concludes with Sensex down 0.7% and Nifty 50 nearly flat; mid and smallcap indices extend winning streak.

Top Gainers in Nifty 50:

• Dr. Reddy’s Laboratories (4.78%)
• Eicher Motors (3.69%)
• Sun Pharmaceutical Industries (3.15%)

Nifty 50 Laggards:

• Larsen & Toubro (down 4.22%)
• Titan Company (down 1.03%)

Sectoral Performance:
All sectoral indices closed in the green, with Healthcare, Pharma, Realty, PSU Bank, and Auto leading the gains.

Expert Views:
Vinod Nair, Head of Research at Geojit Financial Services, suggests a positive market build-up before the Interim Budget. The pharma sector stands out with a positive earnings outlook. Global cues ahead of the FOMC meeting are mixed, with indications about the future trajectory potentially easing volatility.

Technical Views on Nifty 50:
Jatin Gedia, Technical Research Analyst at Sharekhan, notes a rangebound move in Nifty within 21,100 – 21,800. Divergence between price and momentum indicators may lead to continued volatility. Key support levels are 21,550 – 21,500, with an immediate hurdle zone at 21,850 – 21,900.

VoM News Desk

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