The Indian stock market is set to open on a cautious note as investors digest a mix of global and domestic developments. From the latest Gift Nifty trends to the impact of Delhi’s election results and Trump’s new tariff stance, here’s a breakdown of what moved the markets over the weekend.
Gift Nifty Signals a Weak Opening
The Gift Nifty, an indicator of Nifty 50’s opening trend, was trading around 23,569, reflecting a discount of nearly 46 points from the previous Nifty futures close. This suggests a tepid start for Indian equities as global concerns weigh on sentiment.
Global Markets Turn Bearish
Asian markets slid amid renewed concerns over global economic growth. Meanwhile, Wall Street ended lower last week, with the Dow Jones snapping a three-week winning streak. The market reaction came after former U.S. President Donald Trump announced reciprocal tariffs on multiple countries, reigniting trade tensions.
Delhi Election Results 2025: Political Impact on Markets
Investors are keeping a close watch on the outcome of the Delhi elections. Political stability is a key factor influencing market sentiment, and any unexpected results could lead to volatility. Historically, state elections have had a short-term impact on market movements, especially for sectors tied to government policies.
RBI’s 25 bps Rate Cut and Market Response
The Reserve Bank of India (RBI) slashed the repo rate by 25 basis points last week. While the move was largely anticipated, the lack of any strong forward guidance left investors unimpressed. The Sensex and Nifty 50 ended Friday’s session in the red, with financial stocks facing selling pressure.
Mixed Q3 Earnings Keep Investors on Edge
The ongoing earnings season has been a mixed bag so far. While some companies have managed to post strong numbers, others have struggled due to inflationary pressures and weak consumer demand. Market participants will be watching for further corporate earnings reports this week to gauge the broader economic trend.
Foreign Institutional Investors (FIIs) Remain Net Sellers
Foreign investors continued to sell Indian equities, adding to the pressure on domestic markets. Persistent outflows from FIIs signal cautious sentiment toward emerging markets, partly driven by global uncertainties and shifting monetary policies in developed economies.
Oil Prices and Their Market Implications
Crude oil prices remained volatile over the weekend, with Brent crude hovering near $82 per barrel. Energy stocks could see some movement as traders assess the impact of global supply concerns and geopolitical risks.
Retail Inflation Data in Focus
India’s retail inflation data for January is set to be released this week. With inflation remaining a critical concern for policymakers, investors will be closely watching the figures to understand potential future moves by the RBI.
Banking Stocks React to Policy Signals
The banking sector took a hit after the RBI rate cut, with profit-booking seen in major banking stocks. Investors are also assessing whether further rate cuts are on the horizon, which could impact lending margins and overall profitability for financial institutions.
IT Sector and Global Headwinds
Indian IT stocks could see some turbulence as global tech stocks faced pressure in the U.S. market. Concerns over slower growth, reduced spending by global clients, and regulatory scrutiny in key markets are factors weighing on sentiment.
Auto and FMCG Stocks in the Spotlight
Consumer demand remains a key theme for investors, with auto and FMCG stocks reacting to economic indicators. The upcoming inflation data and earnings reports from major consumer-focused companies will provide further direction for these sectors.
