The Indian benchmark indices closed lower on Monday evening as the Sensex declined over 320 points to settle above 85,430 and the Nifty fell more than 78 points to close above 26,250.
In the 30-share BSE Sensex, the top gainers included stocks such as Bharat Electronics, Hindustan Unilever, Tata Steel, Ultra Cement and Axis Bank. Meanwhile, the laggards included stocks like Kotak Bank, IndiGo, BhartiAirtel, ITC and Mahindra and Mahindra.
In the 50-share NSE Nifty50, the Nifty 100 declined 0.25 per cent and the Nifty Smallcap 100 gained 0.53 per cent as volatility remained high, backed by global tensions. Sectorally, the Nifty Realty index jumped 2.07 per cent and the Nifty IT index gained 1.43 per cent.
Previously, during the morning session, the BSE Sensex rang the opening bell above 85,700, falling close to 50 points, while the NSE Nifty50 opened at 26,324, slipping merely 4 points.
Cautious Start as IT Weakness and Global Risks Weigh on Sentiment
Equity markets opened the year on a guarded note, with early gains capped by weakness in IT stocks and rising global uncertainty. Investor caution stemmed largely from concerns over the implications of recent US military action in Venezuela, which has added to geopolitical unease at the start of the new calendar year.
Analysts warned that escalating global tensions could have broader spillover effects on financial markets, tempering optimism despite improving domestic fundamentals.
Geopolitical Flashpoints Cloud Global Outlook
Market experts flagged multiple geopolitical risks that could influence sentiment in the near term. The US action in Venezuela is seen as a potential destabilising factor, while the Russia-Ukraine conflict shows no signs of easing.
Rising protests in Iran, alongside threats of possible intervention by US President Donald Trump, have further complicated the global backdrop. There are also concerns that China could seek to leverage the current situation to advance its position on Taiwan.
Analysts noted that one possible medium- to long-term positive for India from the Venezuelan crisis could be downward pressure on crude oil prices.
Data, Global Cues and FII Moves to Drive Markets
A packed macroeconomic calendar, global market signals and the trading behaviour of foreign investors are expected to guide equity market direction in the coming week, analysts said, as investors enter the new year with cautious optimism around domestic growth fundamentals.
Strong and consistent buying by domestic institutional investors (DIIs) helped Indian equities extend gains last week, providing a buffer against mixed global cues, traders observed.
Earnings Season and PMI Data in Focus
The week ahead is expected to be data-heavy both domestically and globally, coinciding with the early phase of the quarterly earnings season.
On the domestic front, investors will track the final readings of the HSBC Services Purchasing Managers’ Index (PMI) and the Composite PMI for fresh signals on business activity and employment trends. These indicators are likely to offer insights into the strength of India’s services-led growth momentum.
“Globally, key US macroeconomic data and economic releases from China will be closely watched for signals on growth, demand and inflation trends,” said Ajit Mishra, Senior Vice-President (Research) at Religare Broking Ltd.