Top News

Indian Stocks: Indian equity benchmarks opened on a weak note on Friday morning, weighed down by sharp selling in metal stocks and broader market segments. Early losses reflected a cautious mood among investors as global uncertainties and commodity price movements continued to influence sentiment.

At around 9:30 am, the Sensex was trading 525 points lower, a decline of 0.64 per cent, at 82,040. The Nifty also slipped by 159 points, or 0.63 per cent, to hover near the 25,259 level.

Broader Indices Underperform Benchmarks

The pressure was more pronounced outside the frontline indices. Broader market indicators posted steeper losses compared with the Sensex and Nifty. The Nifty Midcap 100 was down by 0.81 per cent, while the Nifty Smallcap 100 fell by 1.19 per cent in early trade, indicating reduced risk appetite among investors.

Market participants appeared selective, with selling concentrated in sectors perceived as more vulnerable to global headwinds and commodity price volatility.

Sectoral Performance Remains Mostly Weak

Most sectoral indices were trading in negative territory during the morning session. Metal stocks witnessed the sharpest fall, with the Nifty Metal index sliding over 4 per cent. Information technology shares also came under pressure, declining around 1.4 per cent.

In contrast, a few defensive pockets offered some stability. FMCG, pharmaceutical, and consumer durable stocks managed to stay marginally in positive territory, supported by relatively stable domestic demand expectations.

Key Technical Levels to Watch

From a technical perspective, analysts pointed out that immediate support for the Nifty lies in the 25,250 to 25,300 range. A decisive break below this zone could invite further selling pressure. On the upside, resistance is seen between 25,550 and 25,600, a level that may cap near-term recovery attempts unless fresh triggers emerge.

Traders are closely monitoring these levels as volatility remains elevated in the near term.

Global Factors and Commodity Prices in Focus

Market experts noted that geopolitical concerns continue to weigh on global trade dynamics. Ongoing uncertainty surrounding tariff-related rhetoric from the United States has kept investors on edge. Adding to the pressure, Brent crude prices have moved closer to the $70 per barrel mark, which is generally seen as a negative factor for India’s macroeconomic environment.

Higher oil prices tend to increase input costs for several industries and can impact inflation expectations, making equity markets more sensitive to global energy trends.

Economic Growth Outlook Offers Some Support

Despite the near-term challenges, analysts believe the domestic growth outlook provides a degree of underlying support to Indian equities. The latest Economic Survey has projected GDP growth in the range of 6.8 per cent to 7.2 per cent for FY27, offering a relatively positive medium-term picture.

With nominal GDP growth expected to be around 10 per cent in FY27, corporate earnings growth in the range of 15 to 17 per cent is considered achievable. This earnings visibility is seen as a factor that could help cushion markets against external shocks.

Export Diversification Seen as Medium-Term Positive

Looking beyond the immediate horizon, experts highlighted India’s ongoing efforts to diversify its export markets. From early 2027 onwards, this strategy is expected to gain traction, particularly with the anticipated implementation of the India–EU trade agreement. Reduced dependence on the US market could enhance stability for export-oriented sectors over time.

Mixed Cues from Global Markets

Asian markets mostly traded lower during the morning session. Chinese indices saw notable declines, while Japan and Hong Kong also slipped. South Korea, however, managed to post modest gains.

Overnight, US markets closed with mixed results. While the Dow Jones ended slightly higher, the broader indices showed mild weakness, reflecting cautious global investor sentiment ahead of key policy-related announcements.

Institutional Activity Remains Supportive

On the institutional front, data from January 29 showed continued divergence between foreign and domestic investors. Foreign institutional investors were net sellers, offloading equities worth Rs 394 crore. In contrast, domestic institutional investors remained supportive, purchasing shares worth Rs 2,634 crore, helping limit deeper market losses.