Tue Jan 28 10:32:03 UTC 2025: ## Indian Stock Market Surges on RBI Liquidity Boost, Despite Global Tech Wobble

**Mumbai, January 28, 2025** – Indian equity markets experienced a significant rebound on Tuesday, fueled by the Reserve Bank of India’s (RBI) announcement of liquidity-enhancing measures. The BSE Sensex surged 844.71 points (1.12%) to close at 76,210.88, while the NSE Nifty climbed 212.70 points (0.93%) to reach 23,041.85. The Bank Nifty demonstrated particularly strong performance, rising 1,090.40 points (2.27%) to 49,155.05. This positive movement follows Monday’s sell-off, which was partially attributed to concerns about US tech valuations after the launch of a low-cost Chinese AI model.

The RBI’s actions, which include purchasing government securities worth ₹60,000 crore and conducting a $5 billion USD/rupee swap auction, significantly boosted investor sentiment. The financial services sector led the gains, with the Nifty Financial Services index up 2.47%.

However, the positive domestic performance occurred against a backdrop of mixed global signals. The Nasdaq Composite experienced its largest one-day percentage drop since December 18th, primarily due to the impact of DeepSeek, a cost-effective Chinese AI assistant, on US tech companies. This caused significant losses in US chipmakers, sparking a broader risk-off sentiment in global markets.

Despite the global uncertainty, several Indian companies reported strong quarterly results. JSW Infrastructure saw a consolidated net profit after tax of ₹335.62 crore, while Cipla’s consolidated net profit reached ₹1,574.59 crore. However, other companies, such as CG Power and Industrial Solutions and LT Foods, reported declines in profit.

The day also saw various corporate announcements. Indian Oil Corporation announced plans to acquire 5-6 gigawatts of solar and wind power projects, while CG Power and Industrial Solutions approved the establishment of a new transformer manufacturing facility. Fintech firm CRED launched a beta version of its e-rupee wallet.

Experts offered mixed perspectives on the market outlook. While some analysts remain cautious, citing potential global headwinds and the upcoming Union Budget, others see the current market conditions as an opportunity for investment in fundamentally strong companies. The RBI’s liquidity measures have raised the possibility of a rate cut in the upcoming February policy meeting, which could further benefit the market. The impact of the US President’s proposed tariffs on imported commodities also remains a key factor to monitor. Overall, the Indian market demonstrated resilience amidst global volatility, showcasing a strong rebound driven by domestic policy initiatives.

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