The key equity indices traded with modest gains in early afternoon trade, as investors viewed the recent correction as excessive. Positive sentiment was further supported by gains in markets across mainland China, South Korea, and Hong Kong, which helped boost domestic investor confidence. The Nifty traded above the 23,150 mark. Auto shares advanced after declining in past seven consecutive trading sessions.

At 12:30 IST, the barometer index, the S&P BSE Sensex, gained 231.05 points or 0.30% to 76,768.28. The Nifty 50 index added 83.10 points or 0.36% to 23,169.05.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rallied 1.51% and the S&P BSE Small-Cap index gained 1.13%.

The market breadth was strong. On the BSE, 2,712 shares rose and 1,114 shares fell. A total of 124 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 2.01% to 15.68. The Nifty 30 January 2025 futures were trading at 23,241, at a premium of 71.95 points as compared with the spot at 23,169.05.

The Nifty option chain for the 30 January 2025 expiry showed maximum Call OI of 53.6 lakh contracts at the 24,000 strike price. Maximum Put OI of 43.7 lakh contracts was seen at 23,000 strike price.

Buzzing Index:

The Nifty Auto index rallied 1.92% to 22,811.40. The index declined 6.80% in seven consecutive trading sessions.

Adani Enterprises (up 7.85%), NMDC (up 4.95%), Steel Authority of India (up 4.95%), Jindal Steel & Power (up 4.78%), Hindustan Zinc (up 4.22%), Vedanta (up 4.1%), Hindalco Industries (up 3.92%), National Aluminium Company (up 3.65%), APL Apollo Tubes (up 3.56%) and Jindal Stainless (up 2.98%) advanced.

Stocks in Spotlight:

Lotus Chocolate Company was locked in lower circuit of 5% after the company’s standalone net profit dropped 29% to Rs 3.72 crore in Q3 FY25 as against Rs 5.24 crore posted in Q2 FY25. However, revenue from operations rose 14.34% quarter on quarter (QoQ) to Rs 146.69 crore in the quarter ended 31 December 2024.

Tata Communications rallied 2.98% after the company informed that it has strengthened its partnership with JLR to deliver smarter, data-driven connected cars, which are expected to hit the roads in 2026.

Indobell Insulations hit an upper circuit of 5% after the company has secured an order for supply and application of hot lagging worth Rs 11.01 crore from Cochin Shipyard.