Sensex soars 200 points, Nifty crosses 23,200 on global optimism; Kotak Mahindra & Wipro lead the surge

On January 20, benchmark indices Nifty and Sensex opened higher, with Kotak Mahindra Bank and Wipro leading the rally. However, weakness in the auto and metal sectors limited the overall gains. India VIX surged nearly 8%, reflecting market anxiety.

Global markets remained positive, driven by optimism following talks between Donald Trump and Chinese President Xi Jinping. This confidence extended to US markets, with investors feeling optimistic about economic health and upcoming policy changes.

By 9:20 AM, Sensex was up by 106.17 points (0.14%) at 76,725.50, and Nifty was up by 17.95 points (0.08%) at 23,221.15. Market breadth showed more advancing shares (1711) than declining ones (1055), with 163 stocks unchanged. According to Ruchit Jain from Motilal Oswal, the rise was mainly due to global cues and positive earnings. He also noted concerns over FIIs maintaining short positions and ongoing selling in the cash segment.

The market remains oversold, trading below its 200-day exponential moving average (200-DMA), which now acts as resistance in the 23,600–23,700 range. Despite potential pullbacks, any broader reversal will likely be led by large-cap stocks, not mid- and small-caps.

Kotak Mahindra Bank’s stock surged 7% after positive earnings for Q3FY25. The bank reported a 10% rise in net profit to Rs 4,701.02 crore, compared to Rs 4,264.78 crore in the previous year. This drove optimism among analysts, leading to upgrades for the bank’s stock.

Wipro also gained 8% after reporting better-than-expected Q3 earnings, with operating margins reaching a three-year high. This positive performance boosted the stock’s outlook, resulting in upgrades by several brokerages.

Dixon Technologies saw a 1% rise as it entered an agreement to acquire land and assets from KHY Electronic India for up to Rs 133 crore. Meanwhile, broader market indices, including mid- and small-cap stocks, traded lower. The Midcap index dropped by 12%, and the Smallcap index fell by 11% from their September peaks. Many individual stocks experienced sharper corrections, dropping 25-40%, due to high valuations and underwhelming Q2 earnings.

Sector-wise, the Nifty Bank and IT indices rose sharply, led by gains in Kotak Mahindra Bank and Wipro, respectively. Nifty PSU Bank and Realty stocks also saw marginal gains of 0.4%. However, the Nifty Auto and Pharma sectors were slightly in the red.

Looking ahead, experts suggest that Nifty could find support at 23,100, with resistance levels at 23,300, 23,400, and 23,500. For Bank Nifty, support is seen at 48,300, with resistance at 48,800, followed by 49,200 and 49,500.

Among the major gainers, Kotak Mahindra Bank, NTPC, SBI, Reliance, and Britannia Industries stood out. The major losers included Shriram Finance, SBI Life, Tata Motors, Tata Steel, and Coal India.