Markets Slip At Open As FII Selling Weighs; Eyes On India–EU Trade Deal

Indian equity benchmarks opened lower on Tuesday, pressured by sustained foreign institutional investor (FII) outflows and mixed corporate earnings for the December quarter, even as investors awaited clarity on the proposed India–European Union Free Trade Agreement (FTA).

By 9:25 AM, the Sensex fell 436 points, or 0.54 per cent, to 81,101, while the Nifty declined 110 points, or 0.44 per cent, to 24,938.

Broader markets mirrored the weak trend, with the Nifty Midcap 100 down 0.53 per cent and the Nifty Smallcap 100 easing 0.57 per cent.

Market participants pointed to continued overseas selling and cautious sentiment ahead of key domestic and global developments.

Most sectoral indices traded in the red, barring metal and PSU banking stocks, which showed limited resilience. Auto, realty and media stocks led the losses, falling 1.90 per cent, 2.15 per cent and 1.28 per cent, respectively.

Analysts believe the Nifty finds immediate support around the 25,000 level, while they expect resistance in the 25,250–25,300 zone.

FTA Hopes Offer Some Optimism

Investors remained cautious but watched closely as negotiators at the India–EU Summit prepared to announce the conclusion of FTA talks.

Market experts believe such an agreement could lift sentiment in sectors such as pharmaceuticals, textiles and chemicals in the coming sessions.

Globally, Asian markets traded mixed. Japan’s Nikkei gained 0.4 per cent, Hong Kong’s Hang Seng rose 1.17 per cent, and South Korea’s Kospi advanced 1.81 per cent, while China’s Shenzhen index slipped 0.38 per cent.

US markets closed higher overnight, with the Nasdaq, S&P 500 and Dow Jones ending in positive territory.

Back home, investors are tracking over 200 quarterly results this week and are closely watching the Union Budget, which the government will present on 1 February.

Recent data showed FIIs selling equities worth over ₹4,100 crore, while domestic institutional investors provided near-equal support through buying.

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