Stock Market Today LIVE: Sensex gains 500 points, Nifty 50 settles at 22,957

The Sensex opened at 75,659 against its previous close of 75,366.17 and rose 1,147 points, or 1.5 per cent, to an intraday high of 76,512.96. The Nifty 50 opened at 22,960.45, up from its previous close of 22,829.15, and jumped 309 points, or 1.4 per cent, to 23,137.95.

Eventually, the Sensex closed 535 points, or 0.71 per cent, higher at 75,901.41, while the Nifty 50 closed the day at 22,957.25, up 128 points, or 0.56 per cent.

Benchmark index Nifty 50 has risen above the 23,000 mark, rising nearly 1 per cent, on gains led by banking and financial stocks. However, experts expect the market to remain volatile ahead of the US Fed outcome on January 29 and Union Budget on February 1.

According to Shrikant Chouhan, the head of equity research at Kotak Securities, the levels of 23,000 and 23,050 would serve as key resistance areas, while 22,800 and 22,750 could act as important support zones.

"If the Nifty 50 falls below 22,750, selling pressure may intensify that could send market to 22,600 levels. The strategy should be to reduce weak long positions around 23,000-23,050 levels. However, during the week, if the index falls to 22,600 then we should look for buying select stocks with a medium to long-term view," said Chouhan.

Several pharma stocks have been reeling under heavy selling for the last few days. The Nifty Pharma index fell over 2 per cent for the third consecutive session on Tuesday. Weak Q3 earnings and uncertainty surrounding the trade policies of US President Donald Trump are the major reasons behind the selloff in pharma stocks. According to experts, the US is the world's largest pharmaceutical market, which offers Indian companies access to a vast consumer base. Indian pharma companies earn a substantial share to their revenues from the US markets.

Shares of Axis Bank, ICICI Bank, HDFC Bank and Bajaj Finance traded as the top gainers in the Nifty 50 index around 10:05 AM. The index was at 22,903, up 74 points, or 0.32 per cent, at that time.

Baking stocks are up after the Reserve Bank of India (RBI) announced a set of forex and money market measures that will collectively infuse ₹1.5 trillion over time. The RBI said it will purchase government securities (G-Secs) worth ₹60,000 crore through open market operations (OMOs) in three tranches of ₹20,000 crore each. The OMO auctions will take place on 30 January, and 13 and 20 February.

As of the previous session's close of 22,829.15, the Nifty 50 is down 13.12 per cent from its peak of 26,277.35.

Recent correction in the Indian market has brought down market valuations to fair levels and experts advice investors should utilise market corrections to buy quality stocks for long term.

"After the correction the market is now trading at fair valuations which are in line with long-term (10-year) averages. Investors can utilise the opportunity to buy fundamentally strong high quality stocks. The outperformance of large caps over mid-and small caps is a healthy trend," said Vijayakumar.

Banking and financial stocks are witnessing healthy gains after the Reserve Bank of India (RBI) announced measures to boost liquidity.

Nity Bank and Nifty Financial Services indices jumped by over a per cent in trade. 

The RBI announced a set of forex and money market measures that will collectively infuse ₹1.5 trillion over time.

The central bank said it will purchase government securities (G-Secs) worth ₹60,000 crore through open market operations (OMOs) in three tranches of ₹20,000 crore each. Through this measure, RBI will purchase G-Secs from the open market and inject liquidity into the system. The OMO auctions will take place on 30 January and 13 and 20 February.

"The RBI’s announcement of measures to boost the liquidity in the banking system by around ₹1.5 lakh crore is positive for the market. This raises the prospect of a rate cut by the MPC in the February policy meeting. Banks are likely to benefit," said Vijayakumar.

After two days of losses, the domestic stock market rose on Tuesday. The rebound was expected as the Indian market appeared to be oversold. The benchmark indices clocked healthy gains in opening deals but pared gains soon. 

Around 9:30 AM, the Sensex was 289 points, or 0.38 per cent, up at 75,655, while the Nifty 50 was up 67 points, or 0.29 per cent, at 22,895.75.

According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the DeepSeek impact on the US stock market in general, and the tech stocks in particular, has turned out to be a reality check for the overvalued stock market. In the medium-term this is likely to have a sobering effect on markets, globally.

The Sensex opened at 75,659 against its previous close of 75,366.17 and jumped over 450 points to the level of 75,847.91. The Nifty 50 opened at 22,960.45 against its previous close of 22,829.15 and rose to the level of 22,973.45.

Stock Market Today Live Updates: Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Tuesday.