Tue Jan 28 11:21:56 UTC 2025: ## Indian Stock Market Rebounds, Buoyed by RBI Measures Despite Global Uncertainty

**Mumbai, India** – Indian stock markets staged a strong rebound on Tuesday, January 28th, defying weak global trends and closing higher. The benchmark Sensex ended the day up 535 points (0.71%) at 75,901.41, while the Nifty 50 gained 128 points (0.56%) to finish at 22,957.25. This surge follows two days of losses and comes as investors await the US Federal Reserve’s policy decision on Wednesday and India’s Union Budget on February 1st.

The rally was initially fueled by banking and financial stocks, which jumped after the Reserve Bank of India (RBI) announced measures to inject ₹1.5 trillion (approximately $182 billion USD) into the system through open market operations (OMOs). The RBI will purchase government securities in three tranches over the coming weeks. This liquidity boost is seen as potentially paving the way for a future interest rate cut.

Despite the positive close, analysts remain cautious. Shrikant Chouhan of Kotak Securities identified key resistance levels for the Nifty 50 at 23,000 and 23,050, and support levels at 22,800 and 22,750. He advised reducing weak long positions around 23,000-23,050 and suggested buying opportunities might arise if the Nifty 50 falls to 22,600.

Conversely, the Nifty Pharma index fell over 2% for the third consecutive day, attributed to weak Q3 earnings and uncertainty surrounding US trade policies.

While market valuations are now considered fair by some experts, who encourage long-term investment in quality stocks, the overall market is expected to remain volatile in the short term due to upcoming key economic events.

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