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Market Performance Today

The domestic markets witnessed a "yo-yo" session before settling higher, supported by strong buying in metal and IT stocks.

• BSE Sensex: Closed at 81,857.48, gaining 319.78 points or 0.39%.
• NSE Nifty 50: Ended at 25,175.40, advancing 126.75 points or 0.51%.
• India VIX: Volatility remained elevated, surging over 6% to settle around the 14.19 level.

Top Movers (Sectors and Stocks)

The market saw a clear divergence between cyclicals and defensive sectors, with metals outperforming significantly.

Top Sectors:

• Nifty Metal: The top sectoral performer, surging 2.28% on the back of rising global commodity prices.
• Nifty IT: Provided crucial support to the indices, gaining approximately 0.5%.
• Nifty PSU Bank: Recovered from early lows to end in the green.
• Laggards: The Nifty Auto, Media, and Realty indices faced selling pressure, with Media hitting fresh 52-week lows.

Top Stocks:

• Gainers: Axis Bank (+5%), Adani Ports (+4.5%), Adani Enterprises (+4.3%), Tech Mahindra (+2.7%), and Tata Steel (+2.7%).
• Losers: Mahindra & Mahindra (-5.06%), Kotak Mahindra Bank (-4.09%), Asian Paints (-3.75%), Maruti Suzuki, and Bharti Airtel.

Key Drivers of Today's Market

Several domestic and global factors converged to drive the market action on Tuesday:

• India-EU FTA Breakthrough: Prime Minister Narendra Modi announced the conclusion of the long-pending Free Trade Agreement with the European Union. Termed the "mother of all deals," it covers economies representing nearly a third of global trade, sparking widespread optimism.
• US Tariff Optimism: Market sentiment was buoyed by reports that the U.S. administration might ease tariff measures related to India's imports of Russian oil.
• Global Cues: A positive overnight close on Wall Street provided a favorable backdrop for Asian markets, despite ongoing concerns regarding international trade policies.
• Pre-Budget Positioning: With the Union Budget scheduled for February 1, investors engaged in selective buying in sectors expected to benefit from government capex and fiscal prudence.

Broader Market Performance

The broader market indices underperformed the frontliners for most of the day but managed a modest recovery toward the close.

• Nifty Midcap 100: Closed approximately 0.6% higher as selective buying returned in the final hour.
• Nifty Smallcap 100: Ended with a gain of 0.4%, though market breadth remained slightly titled toward decliners, reflecting a cautious stance among retail participants.

TAGS: Post-Market, Stock Market, Nifty, Sensex, Market Analysis

Tags: ** Post-Market Stock Market Nifty Sensex Market Analysis