Markets are likely to be driven today by a mix of hope and anxiety ahead of Sunday’s Union Budget. Investors are expecting some tax relief measures that could help attract foreign capital.
Global markets are moving without a clear direction, with corporate earnings shaping sentiment in the US and Europe.
Crude oil, which had climbed above $71 a barrel, slipped back closer to $70. Gold and silver fell sharply on profit-taking.
In derivatives trading at GIFT City, GIFT Nifty closed overnight at 25,457 but slipped to around 25,413 this morning, signalling a weak start for the Nifty.
US futures were trading lower this morning:
Dow Jones down 0.43 percent
S&P 500 down 0.48 percent
Nasdaq down 0.62 percent
Apple initially gained about one percent on strong revenue growth, but later slipped on concerns over chip shortages.
President Donald Trump’s agreement to slow down actions against migrants eased Democratic resistance to blocking the US financial bill. Trump also said the next Federal Reserve chair would be announced today.
US markets closed lower on Thursday. While Meta delivered strong results, weakness in Microsoft weighed heavily. Microsoft shares plunged 10 percent, the steepest fall since March 2020.
Despite a late recovery:
Dow Jones rose 55.96 points (0.11 percent) to 49,071.56
S&P 500 fell 9.02 points (0.13 percent) to 6,969.01
Nasdaq dropped 172.33 points (0.72 percent) to 23,685.12
European markets ended lower, led by Germany, where SAP shares slumped 16 percent after disappointing results, dragging the German index down two percent.
Asian markets opened higher after US budget concerns eased.
Japan’s Nikkei slipped 0.12 percent
Australia rose 0.40 percent
South Korea surged to a fresh record
Hong Kong and Shanghai opened higher
Indian markets fell sharply in early trade yesterday before staging a recovery to close with modest gains. This marked the third straight session of gains, driven mainly by metal and oil stocks.
After the Sensex dropped 630 points and the Nifty 180 points in early trade, benchmarks recovered to post gains of around 0.30 percent. Mid cap and small cap indices, however, saw only marginal gains.
Metal stocks jumped 3.07 percent as bullion and copper prices hit record levels.
Hindustan Copper surged 20 percent to ₹760
Nalco, Hindalco, Vedanta, Tata Steel, Jindal Steel, NMDC and Mishra Dhatu Nigam also advanced
Oil India rose five percent as crude moved above $70.
Kitex Garments, which had surged 35 percent in recent sessions after the promoter group aligned with the BJP-led alliance, fell 6.75 percent.
CSB Bank rebounded 2.5 percent, while Federal Bank hit a record ₹289.60 before closing slightly lower.
Muthoot Finance touched a fresh high of ₹4,149.50 amid a sharp rise in gold prices. The company raised $600 million through overseas bonds, its third foreign fundraising this financial year.
Market closing numbers:
Sensex up 221.69 points (0.27 percent) at 82,566.37
Nifty up 76.15 points (0.30 percent) at 25,418.90
Bank Nifty up 359.05 points (0.60 percent) at 59,957.85
Market breadth weakened, with declining stocks outnumbering gainers on both the BSE and NSE.
Foreign investors were net sellers, offloading ₹393.97 crore worth of shares, while domestic institutions bought shares worth ₹2,638.76 crore.
Despite the third consecutive gain, Nifty’s momentum remains weak. A sustained move above 25,500 is needed for further upside. Volatility is expected to persist until the Budget.
Support is seen at 25,230 and 25,160, while resistance lies at 25,460 and 25,535.
ITC’s profit declined due to an additional ₹274 crore cost from labour code implementation
Dabur reported six percent revenue growth and 7.3 percent rise in net profit
Vedanta posted strong third-quarter numbers, with net profit surging 60.1 percent
Swiggy’s revenue jumped 54 percent, but net loss widened to ₹1,065 crore
Tata Motors’ commercial vehicle arm saw higher operating profit, but net profit fell due to one-off costs
Paytm swung to a profit of ₹225 crore from a loss of ₹208 crore
Gold retreated sharply on profit-taking after nearing $5,600 an ounce. Prices fell steeply before recovering to around $5,360 this morning.
Market chatter suggests prices could rise further due to geopolitical tensions and central bank buying, though jewellery demand in India and West Asia has weakened sharply due to high prices. Gold has surged 114.68 percent in just 13 months, the steepest rise since 1979.
In Kerala, 22-carat gold rose sharply to ₹1,31,160 per sovereign before closing at ₹1,30,360. Prices are expected to soften further today.
Silver slipped to around $115 an ounce after hitting $121.76 earlier.
Industrial metals continued their rally.
Copper surged 6.54 percent to $13,843.40 a tonne, an all-time high
Aluminium edged lower, while nickel, lead, tin and zinc gained
The dollar index remained weak near 96.46.
The rupee opened at ₹91.99 against the dollar but recovered slightly to close at ₹91.96 after RBI intervention. Further strength is possible today as overseas dollar weakness feeds into local markets.
Fears of a US strike on Iran pushed crude oil to $71.89 before prices cooled.
Brent closed at $70.86 and eased to $70.22 this morning
WTI traded at $65.63
Cryptocurrencies extended losses:
Bitcoin fell eight percent below $82,100
Ether and Solana dropped about ten percent each
(As on January 29, Thursday)
Sensex: 82,566.31, up 0.27 percent
Nifty 50: 25,418.90, up 0.30 percent
Bank Nifty: 59,957.85, up 0.60 percent
Midcap 100: 58,541.00, up 0.18 percent
Smallcap 100: 16,825.00, up 0.20 percent
Global markets:
Dow Jones: 49,071.56, up 0.11 percent
S&P 500: 6,969.01, down 0.13 percent
Nasdaq: 23,685.12, down 0.72 percent
Currencies and commodities:
Dollar: ₹91.96, up 0.18 percent
Gold (ounce): $5,412.40, down $3.60
Gold (sovereign): ₹1,30,360, up ₹7,840
Brent crude oil: $68.74, up 1.04 percent
