Tue Jan 28 16:23:02 UTC 2025: ## Indian Markets Rebound After Two-Day Slump, Nifty Closes Above 22,950

**Mumbai, India – January 29, 2024** – Indian equity markets staged a recovery on Tuesday, snapping a two-day losing streak. The benchmark indices, Sensex and Nifty, closed higher, fueled by gains in banking, auto, and realty sectors. The Sensex surged 535.24 points (0.71%) to 75,901.41, while the Nifty climbed 128.1 points (0.56%) to 22,957.25.

Despite the positive close, market sentiment remains cautious. While the RBI’s open market interventions to boost liquidity provided a boost, particularly to large-cap stocks, global uncertainty and disappointing domestic economic indicators continue to weigh on investor confidence. Worries over Trump’s trade policies and the diminishing likelihood of a rate cut next month also contributed to the bearish undertone.

The rally was short-lived, with a sharp selloff in the final hour erasing much of the earlier gains. The Nifty’s volatility throughout the day resulted in a Doji candlestick pattern, indicating indecision among market participants. Analysts suggest that a sustained close above 23,000-23,050 is needed to confirm a trend reversal, otherwise, the bearish sentiment is likely to persist. Immediate support for the Nifty is seen at 22,800.

Sectoral performance was mixed. Rate-sensitive sectors like banking, auto, and realty outperformed, while pharma and energy sectors experienced selling pressure. Broader markets underperformed, with midcap and small-cap indices declining by 0.51% and 1.81% respectively. Among individual stocks, Axis Bank, HDFC Bank, and Bajaj Finserv were among the top gainers, while Sun Pharma, Britannia Industries, and Eicher Motors were among the losers.

The Indian Rupee weakened slightly against the dollar, closing at 86.53 per dollar. The overall market picture suggests a fragile recovery, with continued caution advised ahead of the upcoming Union Budget and FOMC meeting. Analysts maintain a “sell on rise” strategy, particularly for midcap and small-cap stocks.

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