Equity benchmarks opened on a cautious note on Monday, January 12, tracking mixed global cues and lingering geopolitical concerns. The Sensex slipped over
250 points, while the Nifty hovered around the 25,600 mark, reflecting subdued investor sentiment in early trade. At the open, the Sensex started at 83,433.30, down 0.17%, while the Nifty Bank index opened marginally lower at 25,669, slipping 0.06%. Stocks in Focus Financial stocks showed relative strength, with HDFC Life, SBI Life, Shriram Finance and Hindalco among the top gainers on the Nifty 50. Avenue Supermarts (DMart) rose nearly 2%, lending support to the broader market. On the downside, Apollo Hospitals, Max Healthcare, Larsen & Toubro, and Reliance Industries weighed on the indices. What’s Driving Market Sentiment According to Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, markets remain under pressure due to a mix of domestic concerns and global geopolitical uncertainty. He said ambiguity around the US–India trade relationship, tensions linked to Venezuela, Iran, and fresh statements from the US administration have raised volatility. This has pushed the India VIX higher, signalling increased market uncertainty in the near term. The absence of clarity on a possible US Supreme Court ruling on Trump-era tariffs has further added to investor caution. Market participants are now closely watching Q3 earnings and management commentary from IT majors, banks, and large-cap stocks such as Reliance Industries for directional cues. Global and Domestic Cues
- GIFT Nifty opened marginally lower, indicating a cautious start for domestic markets.
- Asian markets traded mostly higher, while Japanese markets remained shut for a public holiday.
- US markets ended the previous session at record highs, led by gains in the S&P 500, Nasdaq, and Dow Jones.
- The US dollar index was largely flat, while the rupee closed slightly stronger in the previous session.
- Crude oil prices edged higher, with Brent trading above $63 per barrel.
- FIIs remained net sellers, while domestic institutional investors continued to provide support.
Commodities Watch
Gold prices edged higher in domestic trade, with MCX gold futures trading around ₹1,38,875 per 10 grams. Spot gold hit its first record high of 2026, supported by safe-haven demand amid geopolitical uncertainty. Silver prices also moved higher.
With volatility elevated and global uncertainties persisting, analysts expect markets to remain range-bound in the near term. Earnings season and global policy developments are likely to dictate the next decisive move for Indian equities.
