Indian stock markets opened higher on January 31, buoyed by optimism surrounding the Economic Survey 2025 and the Union Budget. The Sensex and Nifty 50 extended their gains, led by IT, auto, and construction stocks, while financials and metals remained under pressure.

At 9:17 AM, the Sensex climbed 151 points, or 0.2 per cent, to 76,911, while the Nifty rose 55 points, or 0.2 per cent, to 23,304. Broader markets mirrored the trend, with the BSE Midcap and Smallcap indices gaining 0.2 per cent each. Analysts suggest that investor sentiment remains cautiously optimistic, with market participants tracking fiscal policy cues from the Economic Survey.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized the significance of budgetary expectations. "The Budget - expectations and actuals - will influence the market today and tomorrow. Since we are going into the Budget without a pre-Budget rally, the probability of a rally post-Budget will be high if the Budget delivers on growth-stimulating initiatives like cuts in personal income tax. But it is important to understand that the impact of the Budget will last only for a few days, at best. The medium to long-term trend of the market will be dictated by GDP and earnings growth. Therefore, investors should look for cues on these crucial macro trends."

The Economic Survey 2025, to be presented later today, is expected to outline India’s macroeconomic trajectory ahead of the Budget. Investors will look for insights into growth projections, fiscal consolidation, and policy recommendations to gauge future market movements. Analysts believe a strong focus on capital expenditure and fiscal discipline could further drive market optimism.

Anand James, Chief Market Strategist at Geojit Financial Services, shared his technical perspective: "Though an enthusiastic upside evolved early in the day, it failed short of achieving the full objective of 23,485 lined up for yesterday. We will go in today aiming to play for the same objective, as the 23,128 region had stepped in to restrain the dips and allow bulls to regroup. Downside marker may be pushed higher to the 23,260-23,200 region."

Despite Foreign Institutional Investors (FIIs) offloading Rs 86,100 crore worth of Indian equities in January, the market has shown resilience. Analysts attribute the recent uptrend to short covering and increased domestic investor participation. Quality large-cap financial stocks remain a preferred choice for long-term investors amid volatility.

Global markets have been mixed, with Wall Street closing higher on corporate earnings optimism, while Asian markets exhibited a mixed trend. Japan’s Nikkei 225 was up 0.2 per cent, but South Korea’s Kospi slid 1 per cent.

With the Economic Survey setting the stage, all eyes are now on Budget 2025. If the government unveils pro-growth measures, the market could witness further upside. However, concerns over capital gains tax revisions and fiscal constraints may cap gains in the near term. Investors should remain watchful of macroeconomic indicators and sectoral performance to navigate market volatility effectively.