Wed Jan 29 09:52:22 UTC 2025: ## Indian Stock Market Rebounds After Two-Day Dip, But Mid- and Small-Caps Lag

**Mumbai, January 28** – India’s benchmark stock indices, the Sensex and Nifty 50, staged a recovery on Tuesday, snapping a two-day losing streak. While the Sensex closed 0.71% higher at 75,901.41 and the Nifty 50 gained 0.56% to 22,957.25, the gains were tempered by underperformance in the mid- and small-cap segments.

The BSE Midcap index fell 0.61%, and the BSE Smallcap index dropped 1.77%, resulting in a nearly ₹1 lakh crore loss in overall market capitalization. This decline, despite strong performance from banking and financial stocks, brought the total market capitalization down to approximately ₹409 lakh crore.

The positive performance was largely attributed to several factors: the RBI’s announcement of ₹1.5 trillion in measures to support the forex and money market, including government security purchases; a rebound after previous losses; and a belief among experts that recent market dips present buying opportunities in quality stocks due to India’s long-term economic growth potential. Robust investor participation and improving fundamentals were also cited as contributing factors.

Strong performances were seen in the Nifty Realty, Bank, PSU Bank, Private Bank, and Financial Services indices, all rising nearly 2%. The Nifty Auto index also saw gains of over 1%. Conversely, the Nifty Pharma and Nifty Media indices underperformed, declining over 2% and 1% respectively. Large-cap stocks outperformed mid- and small-caps, a trend considered positive by some analysts.

Analysts offered mixed perspectives on the near-term outlook. While some highlighted fair valuations and the potential for gains, others pointed to continued bearish sentiment, with key support levels to watch. The upcoming Union Budget 2025 is expected to play a significant role in shaping market sentiment in the coming weeks. Investors anticipate measures to boost consumption and economic growth.

**Disclaimer:** This news report summarizes information from various sources. Consult with a financial advisor before making any investment decisions.

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