On January 20, 2025, the BSE Sensex witnessed a significant gain of over 500 points, or 0.68%, reclaiming the 77,000 mark. This rally marked the second-best trading session of the calendar year 2025. The surge comes despite rising market volatility ahead of Donald Trump’s inauguration as the President of the United States for his 2nd term.
Donald Trump, who won the 2024 Presidential race against Democrat Kamala Harris, is set to return to the White House. The swearing-in ceremony on January 20, traditionally known as Inauguration Day, includes celebratory events and the signing of key documents in the Capitol’s President’s Room. Global markets have been closely monitoring the event, which holds implications for economic and trade policies.
The advance-decline ratio leaned slightly in favour of advances, with 18 stocks advancing compared to 12 in the red. Key contributors to the Sensex rally included Kotak Mahindra Bank, HDFC Bank, and ICICI Bank. Kotak Mahindra Bank and Bajaj Finance emerged as the top gainers of the session, while M&M, TCS, and Maruti Suzuki each registered losses exceeding 1%.
As of January 17, 2025, the BSE Sensex is trading with a price-to-earnings (PE) ratio of 22. This figure is below its long-term average PE ratios of 24.29 (1-year), 23.64 (2-year), and 25.97 (5-year). In the short term, it also remains below its 3-month and 6-month averages of 23.80 and 24.37, respectively.
The financial sector was instrumental in driving the rally, with significant contributions from Kotak Mahindra Bank, HDFC Bank, and ICICI Bank. In contrast, notable declines were observed in the auto and IT sectors, with M&M, TCS, and Maruti Suzuki among the underperformers.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jan 20, 2025, 4:20 PM IST
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