Domestic equity benchmarks opened marginally higher on Thursday, though market sentiment remained cautious amid continued foreign portfolio investor (FPI) selling and mixed global cues. The Nifty 50 opened at 25,696.05, gaining 30.45 points or 0.12%, while the BSE Sensex began the session at 83,670.79, up 288.08 points or 0.35%. According to ANI, market expert Ajay Bagga noted that Indian markets are currently in a "wait-and-watch" mode, with expectations from the Union Budget remaining muted, similar to last year. The cautious opening comes despite mixed global cues, with US markets supported by easing Iran-related tensions and strong results from TSMC, though recent developments show both BSE Sensex and NIFTY 50 declined for a fourth consecutive session as global markets ended on a cautious note.
Sectoral trends were mixed on the NSE with Nifty IT leading gains at 1.61%, followed by Nifty FMCG advancing 0.48%. The Nifty Metal gained 0.30% and Nifty PSU Bank rose 0.18%, while Nifty Auto slipped 0.3%, Nifty Pharma declined 0.22% and Nifty Media also traded lower. In the broader market, indices opened in the green with the Nifty 100 rising 0.12%, Nifty Midcap 100 gaining 0.13% and Nifty Smallcap 100 up 0.10% in early trade. As per ANI, Ponmudi R, CEO of Enrich Money, expects Indian equity markets to remain range-bound as global headwinds continue to limit risk appetite.
Global cues remained mixed with Asian markets trading mixed in early hours, adding to the cautious tone for Indian equities. According to ANI, 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. A deal with the European Union would be a morale booster given its large potential market for Indian goods. 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, though recent developments show the S&P 500 and NASDAQ Composite slipped from their recent record highs after fresh inflation data came in hotter than expected.
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. According to ANI, Ponmudi R cited geopolitical developments, tariff-related uncertainties, persistent foreign institutional investor outflows and mixed Q3 earnings as factors keeping investors cautious and selective. The rise in oil prices and inflation fears also weighed on Indian equities, with FIIs reportedly sold more than ₹8,437 crore worth of Indian equities, reflecting risk-off sentiment among global investors. 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.
