Tue Jan 28 05:59:18 UTC 2025: ## Indian Markets Rebound After Two-Day Dip; Investors Eye US Fed Meeting and Budget
**Mumbai, India** – Indian benchmark indices, the Sensex and Nifty, rebounded on Tuesday, ending a two-day losing streak. Investors viewed the recent market downturn as overdone, fueled by optimism surrounding easing foreign outflows and positive developments in the global markets.
The Sensex closed up 0.49 percent at 75,735.08, while the Nifty saw a slight dip of 0.41 percent to 22,923.60. Banking stocks led the gains, with Axis Bank showing the strongest performance, up 1.74 percent. Other notable gainers included Tata Steel, IndusInd Bank, Infosys, and Bajaj Finance.
Despite the rebound, concerns remain about subdued earnings, potential US-China trade tensions, and a slowing Chinese economy. Investors are anxiously awaiting the outcome of the two-day US Federal Open Market Committee (FOMC) meeting and the upcoming Union Budget 2025.
The Reserve Bank of India’s (RBI) recent injection of ₹1.5 trillion into the banking system has been viewed positively, raising expectations of a potential rate cut in the February policy meeting, benefiting banking stocks. Analysts like V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, believe the market is currently trading at valuations comparable to its 10-year average, presenting a buying opportunity for fundamentally strong stocks. He also noted that recent events in the US stock market are acting as a reality check, potentially leading to a more cautious global market outlook.
First Piper 