Stock Market Highlights: Nifty, Sensex Clock Second-Best Session Of 2025; Kotak, HDFC Bank Top Gainers

Indian benchmark indices closed higher after a blip as the world readies for Donald Trump's swearing-in as the 47th US president along with the flurry of executive orders he is expected to sign.

The gains in the key gauges were driven by Kotak Mahindra Bank Ltd. and Wipro Ltd. as positive earnings triggered a target price hike by analysts.

The S&P BSE Sensex Index closed 454 points, or 0.59%, at 77,073.4, while the NSE Nifty 50 was 141 points or 0.61%, higher at 23,344.75.

Intraday, the NSE Nifty 50 advanced 0.81% to 23,391, and the S&P BSE Sensex rose 0.91% to 77,318.9. The gains during the day led the indices to notch the second-best session so far this year.

Indian stocks' bull-bear gauge has moved to 'extreme bearish' ahead of a flurry of key macroeconomic events, with only a "relief rally within a larger correction" on the horizon, according to analysts at CLSA. They see that the market may only see a relief rally within a larger correction.

Markets appear to be consolidating following the recent decline, with the ongoing earnings season keeping participants engaged, according to Ajit Mishra, SVP, Research, Religare Broking Ltd. Additionally, budget-related themes are attracting selective buying interest, he said.

While there has been limited alignment with global markets lately, developments following Trump’s inauguration will be closely monitored for potential cues, Mishra said. "Amid this environment, we recommend exercising caution with aggressive positions and awaiting greater clarity."

Kotak Mahindra Bank Ltd., HDFC Bank Ltd., Bajaj Finance Ltd., State Bank of India, and ICICI Bank Ltd. added positively to the benchmark index.

Tata Consultancy Services Ltd., Trent Ltd., ITC Ltd., Mahindra & Mahindra Ltd., and SBI Life Insurance Co. Ltd. limited gains to the benchmark index.

On NSE, 10 sectors out of 12 ended in positive, and two sectors ended in negative. The Nifty PSU Bank and Bank Index rose over 1.5% to become the best performer among sectoral indices, and the Nifty Auto index fell the most.

Further, the World Economic Forum kicks off in Davos, Switzerland, drawing heads of state, central bankers, and business leaders to discuss pressing global issues.

On BSE, 18 sectors advanced and three declined out of 21. The BSE Telecommunication rose the most, while the BSE Auto declined the most.

The BSE Midcap ended 0.66% higher. The BSE Smallcap ended 0.82% to outperform large-cap and midcap stock gauges.

Market breadth was skewed in favour buyers. Around 2,505 stocks advanced, 1,542 stocks declined, and 176 stocks remained unchanged on BSE.