SENSEX skyrockets over 850 points, NIFTY50 reclaims 25,400; here are key factors behind the surge

The Indian equity benchmarks were on track to snap their three-day losing streak and staged a gap up opening on Thursday, January 22 as geopolitical tensions eased and United States President Donald Trump hinted at optimism on a bilateral trade deal with India.

The SENSEX rose as much as 874 points and NIFTY50 index touched an intraday high of 25,436 amid strong support from global markets.

Global market update

Markets across the world moved higher after Trump said that he reached the framework for a deal about Greenland and won’t impose tariffs he had threatened on several European countries.

Japan's Nikkei rose 1.78%, Hong Kong's Hang Seng fell 0.2%, South Korea's KOSPI advanced 1.9% and Australia's S&P/ASX 200 index gained 0.56%.

Overnight, Dow Jones rose 1.21%, S&P 500 index advanced 1.16% and tech heavy Nasdaq climbed 1.18%.

Trump comments boost sentiment

Sectoral landscape

Volatility eased and buying was visible across board as all the major sector gauges compiled by the National Stock Exchange (NSE) were trading higher led by the NIFTY PSU Bank index's nearly 3% gain. NIFTY Bank, Financial Services, Auto, Pharma, Metal, Healthcare, Consumer Durables and Oil & Gas indices also surged between 1%-1.7%.

Broader markets staged a strong bounce back after underperforming their larger peers in the last three sessions as NIFTY Midcap 100 index jumped 1.75% and NIFTY Smallcap 100 index climbed 1.6%.

Stock specific action: Waaree Energies, Bank of India shine

Among the individual shares, Bank of India shares surged over 6% after the state-run lender post market hours said that its net profit in December quarter advanced 7.5% to ₹2,705 crore from ₹2,517 crore in the same period last year.

The bank's asset quality improved as its gross non-performing assets as a percentage of total advances came in at 2.26% compared with 3.69% in the year-ago period.

Waaree Energies shares surged 11.7% to hit an intraday high of ₹2,701 after its announced robust quarterly earnings post market hours on Wednesday.

The company posted a strong revenue growth of over 118% YoY to ₹7,565 crore, as against ₹3,457 crore in the same period last year, after the company achieved 3.51 GW module production in the quarter, driven by operational focus.

On the operational front, the EBITDA for the company jumped 167% YoY to ₹1,928 crore as against ₹921 crore in the same period last year. Consequently, the EBITDA margin for the quarter also expanded by over 500 bps to 25.4% vs 20.88% in the previous year’s same quarter.

Lastly, the company’s net profit for the quarter jumped 118% to ₹1,106 crore as compared to ₹506 crore in the Q3FY25, primarily due to one-time exceptional expense owing to provision made worth of ₹294 crore in relation to its ongoing investigation by the US Customs and Border Protection. The robust profitability was led by strong operational efficiency and a robust order book.

Defence shares rally on India-EU trade deal buzz

Defence shares were also witnessing strong buying interest after Kaja Kallas, the EU High Representative for Foreign Affairs and Security Policy and the Vice-President of the European Commission, in her post on X on Monday, said that Europe is ready to deliver on a powerful new agenda with India.

"Today, the EU agreed to move forward with the signature of a new Security and Defence Partnership," Kallas said.

India and the European Union are set to announce the conclusion of a free trade agreement, the firming up of a defence partnership pact and a framework for the mobility of Indian professionals at the summit talks next week, news agency PTI reported earlier this week, citing their diplomatic sources.

Measure of defence shares on the NSE jumped 2% with all the shares in the index trading higher.

NIFTY50 gainers and losers

Dr Reddy's Labs was top gainer in the NIFTY50 index, the stock rose 4.5% to ₹1,209 after the company on Wednesday said its consolidated profit after tax declined 14% year-on-year to ₹1,210 crore in the third quarter ended December 2025, hit by lower sales in the US market.

The Hyderabad-based drug major posted a profit after tax (PAT) of ₹1,413 crore in the October-December quarter of the last fiscal.

Eternal shares gave up initial gains after surging as much as 7.58% in intraday deals to hit high of ₹305 after the parent entity of Zomato and Blinkit, on Wednesday, reported a 72.88% rise in consolidated net profit at ₹102 crore for the December quarter of FY26, driven by robust revenue growth from its quick commerce operations.

In the year-ago period, the company logged a profit of ₹59 crore.

The company's board also approved the resignation of Deepinder Goyal as Director, MD & CEO of the company, with effect from February 1 and recommended his appointment as Vice Chairman & Director on the board for a five-year term.

Adani Enterprises, Tata Motors PV, Adani Ports, Tata Steel, Eicher Motors, Bharat Electronics and Asian Paints also rose between 2.3%-3.3%.

On the flipside, Max Healthcare was the only loser in the NIFTY50 index.

The overall market breadth was extremely positive as 2,847 shares were advancing while 576 were declining on the BSE.