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EQUITY
Post Session: Quick Review
Jan-31-2025

Indian equity benchmarks held their gains till the end of the session and ended with gains of around a percent amid pre-budget rally. Markets made positive start and continued their gaining momentum as traders preferred to buy fundamentally strong stocks. 

Some of the important factors for the markets:

FM Nirmala Sitharaman tabled Economic Survey 2025 in Lok Sabha: Finance Minister Nirmala Sitharaman tabled the Economic Survey in Parliament. The survey projects India's GDP to grow in the range of 6.3-6.8% for the financial year 2025-26. According to the survey, India's real GDP growth of 6.4% in the financial year 2024-25 (as per first advance estimates of national income) remains close to the decadal average despite global uncertainty.

RBI interest rate cut expectation: The Reserve Bank of India (RBI) is likely to cut its main policy rate on February 7 followed by just one more cut next quarter. 

European central bank cuts rate: The European Central Bank announced a 25-basis-point interest rate cut, its fifth one since the central bank began easing monetary policy in June last year.

Global front: European markets were trading higher as investors continue to cheer the European Central Bank's rate cut decision and the dovish remarks suggesting the possibility of more monetary easing in the coming months. Investors are also digesting the data on French consumer price inflation and producer prices data. Asian markets ended mostly in green following encouraging earnings updates from Apple and Intel.

The BSE Sensex ended at 77,500.57, up by 740.76 points or 0.97% after trading in a range of 76,833.87 and 77,605.96. There were 25 stocks advancing against 5 stocks declining on the index. (provisional)

The broader indices ended in green; the BSE Mid cap index gained 1.76%, while Small cap index was up by 1.83%. (provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 3.89%, Industrials up by 3.61%, Consumer Durables up by 2.77%, PSU up by 2.59%, Power up by 2.56%, while there were no losing sectoral indices on the BSE. (provisional)

The top gainers on the Sensex were Larsen & Toubro up by 4.37%, Indusind Bank up by 3.95%, Nestle up by 3.71%, Titan Company up by 3.60% and Tata Steel up by 2.86%. On the flip side, Bharti Airtel down by 0.76%, Bajaj Finserv down by 0.27%, ICICI Bank down by 0.14%, Bajaj Finance down by 0.14% and Kotak Mahindra Bank down by 0.06% were the top losers. (provisional)

Meanwhile, Reserve Bank of India (RBI) has tightened norms for imposing monetary penalties and compounding offences under the Payment and Settlement Systems Act (PSS Act) to rationalise and consolidate enforcement action by the central bank. As per the revised framework for payment system operators and Banks, operation of a payment system without authorisation, disclosure of information, which is prohibited, and failure to pay the penalty imposed by the Reserve Bank within the stipulated period are among the contraventions under the PSS Act.

The 'Framework for imposing monetary penalty and compounding of offences under the Payment and Settlement Systems Act, 2007 said ‘(The) Reserve Bank is empowered to impose a penalty not exceeding Rs 10 lakh or twice the amount involved in such contravention or default where such amount is quantifiable, whichever is more, in case of contraventions/defaults...’. Earlier, the RBI was empowered to impose a penalty not exceeding Rs 5 lakh. The amount was raised following the enactment of the Jan Vishwas (Amendment of Provisions) Act, 2023, which came into force on January 22, 2024.

In cases where such contravention or default is a continuing one, a further penalty of up to Rs 25,000 for every day after the first, during which the contravention or default continues, can also be imposed. The PSS Act empowers an officer of the Reserve Bank duly authorised by it on this behalf to compound contraventions, not being an offence punishable with imprisonment only or with imprisonment and fine. The RBI further said only material contraventions will be taken up for enforcement action in the form of imposition of monetary penalty or compounding of offences. The framework also provides procedures for imposing monetary penalties and determining the amount of penalty.

The CNX Nifty ended at 23,508.40, up by 258.90 points or 1.11% after trading in a range of 23,277.40 and 23,546.80. There were 43 stocks advancing against 7 stocks declining on the index. (provisional)

The top gainers on Nifty were Tata Consumer up by 5.99%, Bharat Electronics up by 4.99%, Trent up by 4.39%, Nestle up by 4.32% and Larsen & Toubro up by 4.28%. On the flip side, Bharti Airtel down by 0.88%, JSW Steel down by 0.62%, Bajaj Finserv down by 0.52%, ICICI Bank down by 0.22% and Bajaj Finance down by 0.21% were the top losers. (provisional)

European markets were trading higher; UK’s FTSE 100 increased 36.17 points or 0.42% to 8,683.05, France’s CAC rose 30.47 points or 0.38% to 7,972.11 and Germany’s DAX was up by 44.05 points or 0.2% to 21,771.25. 

Asian markets settled mostly higher on Friday, tracking Wall Street’s gains overnight driven by strong profit reports from Tesla, IBM and Meta Platforms. Japanese shares gained marginally as a slew upbeat data fuelled the prospect of further interest rate hikes from the Bank of Japan. Data showed that Japan's industrial output unexpectedly grew in December and retail sales hit a six-month high, Tokyo consumer price index for January increased to 3.4% from 3% in the previous month, while the unemployment rate also dropped unexpectedly to 2.4% in January. But, Seoul shares declined amid a sell-off in technology shares on concerns over China's growing AI capabilities, and US tariff worries lingered. Markets in China, Hong Kong and Taiwan were remained closed for the Lunar New Year holiday. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

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Hang Seng

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Jakarta Composite

7,109.20

35.72

0.50

KLSE Composite

1,556.92

4.23

0.27

Nikkei 225

39,572.49

58.52

0.15

Straits Times

3,855.82

54.75

1.42

KOSPI Composite

2,517.37

-19.43

-0.77

Taiwan Weighted

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