Domestic equity benchmarks opened marginally higher on Thursday, though market sentiment remained cautious amid continued foreign portfolio investor (FPI) selling, mixed global cues and limited expectations from the upcoming Union Budget.
The Nifty 50 opened at 25,696.05, gaining 30.45 points or 0.12 per cent, while the BSE Sensex began the session at 83,670.79, up 288.08 points or 0.35 per cent.
Market expert Ajay Bagga said that Indian markets are currently in a “wait-and-watch” mode. He said expectations from the Union Budget remain muted, similar to last year, while IPO activity continues to see a focus on listing gains even as FPI selling in the secondary market stays elevated.
Bagga added that market sentiment could get a boost from positive developments on the trade front, particularly hopes of an India–EU trade agreement by January 26 and progress in India–US trade talks. He noted that a deal with the European Union would be a morale booster given its large potential market for Indian goods.
In the broader market, indices opened in the green, with the Nifty 100 rising 0.12 per cent, the Nifty Midcap 100 gaining 0.13 per cent and the Nifty Smallcap 100 up 0.10 per cent in early trade.
Sectoral trends were mixed on the NSE. Nifty IT led gains, rising 1.61 per cent, followed by Nifty FMCG, which advanced 0.48 per cent. Nifty Metal gained 0.30 per cent and Nifty PSU Bank rose 0.18 per cent. On the downside, Nifty Auto slipped 0.3 per cent, Nifty Pharma declined 0.22 per cent and Nifty Media also traded lower.
Several major companies are scheduled to announce their third-quarter results later in the day, including Reliance Industries, Wipro, Tech Mahindra, Polycab India, L&T Finance, Federal Bank, JSW Infrastructure, Poonawalla Fincorp, Central Bank of India, JB Chemicals and Pharmaceuticals, and Tata Technologies.
Ponmudi R, CEO of Enrich Money, said Indian equity markets are likely to remain range-bound as global headwinds continue to limit risk appetite. He cited geopolitical developments, tariff-related uncertainties, persistent foreign institutional investor outflows and mixed Q3 earnings as factors keeping investors cautious and selective.
On the fund flow front, foreign institutional investors sold equities worth ₹4,781.2 crore on January 14, while domestic institutional investors were net buyers to the tune of ₹5,217.3 crore.
Globally, US markets were supported by easing Iran-related tensions, strong results from TSMC that lifted AI and semiconductor stocks, and gains in financials led by Goldman Sachs and Morgan Stanley. Asian markets, however, traded mixed in early hours, adding to the cautious tone for Indian equities. (ANI)
