Sensex Jumps Over 700 Points: What’s Driving the Stock Market Rally Today

iamramdharsan
Jan 22
2 min read

Mumbai, 22 January 2026:Dalal Street opened on a strong note on Thursday, as investor sentiment improved following positive global cues. S&P BSE Sensex jumped 785.92 points to 82,695.55, while the NSE Nifty50 gained 251.60 points to 25,409.10 in early trade.

The rally comes after several weak sessions, as buyers returned to the market amid short-covering, improving global sentiment, and hopes of progress on US-India trade ties.

Global Cues Boost Investor Mood

Wall Street rebounded sharply after President Donald Trump ruled out new tariffs on European allies and dropped the use-of-force option for Greenland. European markets remained cautious, but Asian indices, including Japan, South Korea, and Australia, mirrored gains from Wall Street.

Trump also hinted at a “good deal” with India, lifting expectations for trade negotiations. Market experts attribute part of Thursday’s rally to short-covering after recent declines.

“The relief rally could gather strength, with about 2 lakh short contracts in the market ready for short-covering,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments.

Corporate Earnings Highlighted

Earnings momentum also supported the market. Eternal led early gainers with a 6.51% jump, reflecting strong revenue and profit growth from its quick commerce business. Other gainers included:

Mahindra & Mahindra: +1.87%
Adani Ports & SEZ: +1.83%
UltraTech Cement: +1.26%
Bharat Electronics: +1.06%

There were no major losers at the opening, signaling limited selling pressure.

Sectoral Indices in Green

The rally was broad-based, with both mid-cap and small-cap indices advancing:

Nifty Midcap 100: +1.43%
Nifty Smallcap 100: +1.12%

All major sectors traded higher, including:

Nifty Auto: +1.05%
Nifty Financial Services: +0.80%
Nifty FMCG: +0.61%
Nifty IT: +0.94%
Nifty Media: +1.47%
Nifty PSU Bank: +2.06%

The India VIX, measuring market volatility, fell 3.01%, indicating reduced investor fear.

Technical Outlook on Nifty

Anand James, Chief Market Strategist at Geojit Investments, said:

“Upswing attempts failed to sustain yesterday after meeting 25,300. However, the doji formed below the lower Bollinger band and near the 200-day SMA may allow a period of consolidation. A rise above 25,300 could aim for 25,470–25,480.”

Investors will also monitor key global data, including Japan’s trade balance and US GDP growth, alongside domestic Q3 corporate earnings from companies such as InterGlobe Aviation, Indian Bank, DLF, Bandhan Bank, and Adani Energy Solutions.

Key Takeaways

Relief over US-Europe trade tensions and Greenland developments
Positive expectations for US-India trade agreements
Broad-based buying across large, mid, and small-cap stocks
Limited selling pressure and reduced market volatility

The market’s next moves will depend on global cues, corporate earnings, and domestic economic data throughout the trading session.