The Indian equity markets started the week on a lower note due to ongoing FII selling and a mix of December quarter results. The Sensex dropped by 436 points, or 0.54%, reaching 81,101, while the Nifty fell by 110 points, or 0.44%, to 24,938 as of 9.25 am. Analysts anticipate a positive market sentiment post the India-EU Summit announcement of concluding negotiations on a Free Trade Agreement, particularly benefiting sectors like pharma, textiles, and chemicals.
Main broad-cap indices mirrored the benchmark indices’ performance, with the Nifty Midcap 100 down by 0.53% and the Nifty Smallcap 100 by 0.57%. While most sectoral indices showed a decline, metal and PSU bank sectors remained in the green. Notably, Nifty auto, realty, and media sectors witnessed significant losses, dropping by 1.90%, 2.15%, and 1.28%, respectively.
Market watchers highlighted that the immediate support level is around the 25,000 zone, with resistance currently positioned near the 25,250–25,300 zone. In other news, the United States has hinted at a potential reduction in the 25% tariff on India, initially imposed due to Russian oil purchases, although the tariff remains effective for now.
China reported a 0.6% increase in industrial profits in CY25 compared to the previous year, marking a reversal from three years of consecutive decline, attributed to manufacturing output growth despite weak domestic demand. Across Asian markets, China’s Shanghai index rose by 0.03%, Japan’s Nikkei by 0.4%, and Hong Kong’s Hang Seng Index by 1.17%, while South Korea’s Kospi surged by 1.81%. In the US, Nasdaq, S&P 500, and Dow closed positively in the last trading session.
Investors are closely monitoring over 200 quarterly corporate results expected this week and await insights from the upcoming Union Budget presentation scheduled for Sunday, February 1. Foreign institutional investors (FIIs) recorded net equities selling worth Rs 4,113 crore on January 20, whereas domestic institutional investors (DIIs) were net buyers of equities worth Rs 4,103 crore.
