Indian stock markets opened on a subdued note on Friday, facing selling pressure as both benchmark indices started the day in the red.
The Nifty 50 index began trading at 23,183.90, down by 21.45 points or 0.09 per cent. Similarly, the BSE Sensex opened lower by 65.03 points, settling at 76,455.35, reflecting a decline of 0.08 per cent.
Market experts highlighted that Indian equities have been underperforming in 2025 so far, with the upcoming Union Budget and a potential RBI rate cut likely to play a pivotal role in shaping market sentiment.
Ajay Bagga Banking and Market Expert told ANI that “India has been an underperforming market in 2025 so far due to the intense FPI selling. We are looking at a slight positive open as per futures, but follow up action will depend on the contours of the Union Budget 2025 on February 1st and then the RBI interest rate action on February 7th.”
He added “After US markets rose post Trump speech, this morning Asian equities are up, with Chinese stocks leading gains, after comments from Trump hinting at a potentially softer approach toward tariffs on China. The dollar is softer. A gauge of Chinese stocks in Hong Kong is up, while the yuan is stronger. Trump also said in an interview with Fox News that he would rather not have to use tariffs against the world’s second-largest economy”.
On the global front, US President Trump addressed the World Economic Forum virtually from Davos, Switzerland. In his speech, he emphasized tackling “economic chaos” and shared his administration’s plans to focus on deregulation, artificial intelligence, and cryptocurrency. Among his priorities, he stressed reducing inflation, cutting taxes, and collaborating with OPEC to lower crude oil prices. The President also called for lower interest rates and urged Russia to sign a peace deal with Ukraine, highlighting China’s potential role in mediating the situation.
In sectoral trends, Nifty Media, Metal, and PSU Bank indices witnessed gains in early trade, while other sectors faced selling pressure.
“The 23426 – 23471 remains a formidable upside hurdle for the benchmark, but the real action is occurring in the NSE mid- and smallcap indexes which significantly outperformed the nifty. The former traced an upside follow through candle yesterday while the latter generated a “bullish piercing line” formation. All the headline indices remain below the major daily moving averages – 50/100/200, so it is important to tread with caution as the market starts to probe higher levels,” said Akshay Chinchalkar, Head of Research, Axis Securities.
Additionally, several major companies, including JSW, DLF, InterGlobe Aviation, Godrej Consumer Products, Torrent Pharmaceuticals, Shriram Finance, Bank of India, AU Small Finance Bank, and Laurus Labs, are set to announce their Q3 FY24-25 earnings today.
In the broader Asian markets, performance was largely positive. Hong Kong’s Hang Seng surged over 2 per cent, Japan’s Nikkei 225 rose by 0.58 per cent, and South Korea’s Kospi advanced 0.83 per cent. However, Singapore’s Straits Times index faced losses, and Taiwan’s Weighted Index remained closed for a holiday.
(ANI)
