Mumbai: The Indian stock market began the trading week on a weak note, with benchmark indices opening lower on Monday due to disappointing Q3 earnings and subdued global cues, just days ahead of the Union Budget 2025-26.
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Market Performance Overview
At around 9:32 am, the Sensex was trading at 75,756.52, down 433 points or 0.57%, while the Nifty 50 slipped below the 23,000-mark, trading at 22,963.75, down by 128.45 points or 0.56%.
As the trading session progressed, the market showed signs of recovery, paring some early morning losses.
On the Nifty, gainers included Britannia, HUL, ICICI Bank, and Dr. Reddy’s Labs. However, major laggards were HDFC Bank, Infosys, NTPC, Bharat Electronics, Hindalco, Trent, and Axis Bank.
Most sectoral indices traded in the red, with the exception of the realty sector.
Expert Analysis and Trading Strategy
Market analysts highlighted that the Indian equity market is facing persistent selling pressure at higher levels, forming lower tops on daily charts—a bearish signal from a technical standpoint.
“The strategy should be to reduce weak long positions below the 22,950 level. However, if the market falls further to 22,600, it could present an opportunity to buy select stocks with a medium to long-term view,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Factors Impacting Market Sentiment
The weak opening came amid a mix of global and domestic uncertainties:
- Foreign Institutional Investors (FIIs): FIIs continued their selling spree, offloading equities worth Rs 2,658 crore last Friday. This reflects their cautious stance amid global economic uncertainties.
- Domestic Institutional Investors (DIIs): DIIs provided some support by purchasing equities worth Rs 2,450 crore. However, their buying wasn’t sufficient to counterbalance the selling pressure from FIIs.
- Global Cues: Weak global economic signals, including concerns over crude oil prices, the dollar index, and US GDP growth rate data, further weighed on investor sentiment.
- Disappointing Q3 Earnings: Poor quarterly earnings reports from key sectors have dampened investor confidence, adding to the overall market pressure.
Outlook for the Week
The Indian equity market’s performance this week will be shaped by key domestic and global events, including:
- Union Budget 2025-26: Finance Minister Nirmala Sitharaman is set to present the Union Budget in Parliament on February 1. Market participants are keenly watching for announcements related to economic growth, infrastructure, and taxation policies.
- Q3 Earnings Reports: Results from major companies will continue to influence stock-specific movements.
- Global Economic Indicators: Crude oil prices, movements in the dollar index, and US GDP growth rate data will be crucial factors.
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Market Expert Insights
“Overall, the markets remained under pressure throughout the session, with investors exercising caution ahead of key global and domestic events.
Traders are advised to closely monitor price action at critical support and resistance levels before making significant moves in the coming days,” said Mandar Bhojane, Equity Research Analyst at Choice Broking.
Key Takeaways for Investors
- Support and Resistance Levels: Traders should closely observe Nifty’s critical support level at 22,600 and resistance at 23,000.
- Stock Picks: Analysts recommend focusing on fundamentally strong stocks with medium to long-term growth potential.
- Event-Driven Volatility: Investors should be prepared for market fluctuations driven by the upcoming Union Budget and global economic data.