Sensex and Nifty Surge Amid Banking Gains; Telecom Stocks Soar After Budget Broadband Announcement

The Indian stock market saw a strong rally with the Sensex and Nifty gaining over 1.5%, driven by banking sector gains. Telecom stocks like D-Link, MTNL, and HFCL surged following the Union Budget’s announcement for rural broadband connectivity. Despite sector-specific gains, broader market sentiment remained subdued.

CONTENTS:

• Sensex and Nifty Surge Over 1.5% Driven by Banking and Financial Sectors; Selective Stock-Picking Strategy Recommended
• Sensex Soars as US Tariff Fears Rise; Nomura Highlights Potential Inflation and Growth Risks
• Sensex and Nifty Open Higher, Then Turn Negative; IndusInd Bank and NTPC Lead Gainers
• Telecom Stocks Surge After Budget Announcement for Rural Broadband Connectivity

Sensex and Nifty Surge Amid Banking Gains; Telecom Stocks Soar After Budget Broadband Announcement

Sensex and Nifty Surge Over 1.5% Driven by Banking and Financial Sectors; Selective Stock-Picking Strategy Recommended

Sensex and Nifty Surge Amid Banking Gains; Telecom The Indian stock market experienced a significant rally, with the Sensex and Nifty indices both rising by over 1.5% in the last session. This surge was largely driven by gains in the banking and financial sectors. The Sensex gained 1,397.07 points, closing at 78,583.81, while the Nifty climbed 378.20 points to reach 23,739.25.

Market experts suggest that the market’s momentum will depend on the banking sector, particularly if the banking index exceeds the 50,200 level. Some analysts recommend a selective stock-picking strategy, focusing on large-cap and mid-cap stocks. Geopolitical tensions, trade wars, and domestic events like the RBI’s Monetary Policy Committee (MPC) meeting could affect market sentiment.

Banking stocks are particularly in focus, with expectations of a rate cut in the upcoming RBI policy meeting, marking the first under the new RBI governor. Experts predict that large-cap stocks will remain favorable in the current market environment.

Additionally, stocks such as Swiggy, Reliance Power, and Info Edge will be watched closely due to upcoming earnings announcements. Defence stocks, driven by strong order books and rising exports, are also attracting attention, with analysts seeing them as attractive for long-term investment after recent price corrections.

Sensex Soars as US Tariff Fears Rise; Nomura Highlights Potential Inflation and Growth Risks

Sensex and Nifty Surge Amid Banking Gains; Telecom On Tuesday, the Indian stock market saw a strong rally with the Sensex rising by 1,397.07 points (1.81%) to reach 78,583.81 and Nifty increasing by 378.20 points (1.62%) to 23,739.25. This surge was fueled by a relief rally, partly due to the delayed implementation of US tariffs on Mexico and Canada. However, Nomura has issued a warning, revising its base case for US tariffs upwards, indicating a higher likelihood of tariffs on these countries.

Nomura highlighted that the new tariffs on China are the largest single tariff hike Donald Trump has enacted during his presidency. If these tariffs are fully implemented, they could exceed the total tariff increases from Trump’s first term. Additionally, Trump has indicated further tariffs on the European Union and certain goods like semiconductors, raising the potential for even higher tariff risks.

Nomura outlined four possible tariff scenarios:

1. Old Baseline: Assumes quick rescinding of most tariffs on Canada and Mexico, with tariffs on China rising by 35% in 2025. This scenario forecasts a core PCE inflation of 3% in December 2025 and slower GDP growth.
2. Current Baseline: Includes 10% tariffs on Canada and Mexico, raising the effective tariff rate to 14.4%. This would likely result in a core US PCE inflation of 3.3% and a deceleration of GDP growth to 1.6%.
3. Baseline Plus Higher Tariffs: This scenario assumes 25% tariffs on Canada and Mexico, leading to a jump in the effective tariff rate to 17.6%. It predicts a core PCE inflation of 3.7% and a slowdown in GDP growth to 1.5%.
4. No New Tariffs: The least likely scenario where no new tariffs are imposed and the current tariffs on China are rescinded. This would result in a lower inflation rate of 2.3% and stable GDP growth.

The potential impact of these tariff increases on inflation, GDP growth, and revenue generation is significant, with Nomura estimating that tariffs could generate between $190 billion to $350 billion annually from 2025 to 2028, depending on the scenario.

Sensex and Nifty Open Higher, Then Turn Negative; IndusInd Bank and NTPC Lead Gainers

Sensex and Nifty Surge Amid Banking Gains; Telecom  India’s stock market opened on a positive note on Wednesday, following favorable global cues. The BSE Sensex gained 120 points initially, reaching 78,704.60, while Nifty added 62 points, trading at 23,802. However, both indices quickly lost their momentum and turned negative.

IndusInd Bank, NTPC, Power Grid, Adani Ports, Infosys, and HDFC Bank were among the top gainers on the Sensex, with their shares rising between 0.4% and 1.5%. On the other hand, Asian Paints experienced a 4% decline, while Nestle India, Sun Pharma, and Ultratech Cement were also among the major losers.

In the broader market, the Nifty MidCap index gained 0.46%, while the Nifty SmallCap index rose by 0.88%. The Nifty PSU Bank index was the top-performing sector, climbing 1.2%.

Global markets were up, with Asia-Pacific indices reflecting positive sentiment from US stocks. Wall Street had a strong session, with the Nasdaq up 1.35%, the S&P 500 rising 0.72%, and the Dow Jones increasing by 0.30%. Investors are now looking ahead to upcoming PMI data and US trade figures.

China, after resuming trading post-Lunar New Year, is set to release its Caixin Services PMI for January later today, which will provide insights into the performance of its services sector.

Telecom Stocks Surge After Budget Announcement for Rural Broadband Connectivity

Sensex and Nifty Surge Amid Banking Gains; Telecom Telecom stocks such as D-Link, MTNL, and HFCL saw significant gains on February 1 following the announcement of a new government initiative in the Union Budget 2025. Finance Minister Nirmala Sitharaman revealed plans to provide broadband connectivity to government secondary schools and primary healthcare centers in rural areas under the ‘Bharat Net’ project.

D-Link (India) shares surged nearly 9%, reaching Rs 525.65 at 11:32 am. This price is about 105 times higher than its 52-week low of Rs 255.9, although it’s still 28% lower than its 52-week high of Rs 728.

HFCL shares rose over 7%, trading at Rs 104.51. The stock is currently 29% higher than its 52-week low of Rs 81.25 but 39% lower than its 52-week high of Rs 171.

MTNL shares gained over 3%, trading at Rs 47.61. However, they are significantly below their 52-week high of Rs 101.88.

Despite the sector-specific rally, the broader market sentiment remained subdued as the Finance Minister continued presenting the Budget. The Sensex hovered around the 77,400 mark, while Nifty dropped 0.15%, trading at 23,474 by 12:05 pm.