Subdued global cues saw Indian equity benchmarks begin the week on a cautious note, trading with a mild negative bias on Monday.
Pressure from IT stocks and fresh geopolitical tensions involving the United States and Venezuela weighed on investor sentiment despite an improving corporate earnings outlook.
By 9:30 AM, the Sensex slipped 62 points, or 0.07 per cent, to 85,699. Meanwhile, the Nifty edged up slightly by 9 points, or 0.03 per cent, to 26,319, reflecting a largely range-bound start to the session.
Across the broader market, indices moved broadly in line with the benchmarks. The Nifty Midcap 100 remained unchanged, while the Nifty Smallcap 100 gained 0.36 per cent, indicating selective buying interest in smaller stocks.
Among frontline stocks, ONGC and State Bank of India featured among the top gainers on the Nifty. On the sectoral front, IT stocks underperformed, with the Nifty IT index falling 1.41 per cent.
In contrast, media, metal and PSU stocks outshone the broader market. The Nifty Media index rose 0.84 per cent, the Nifty Metal climbed 0.70 per cent, and the PSU index advanced 0.79 per cent.
Technical Levels and Geopolitical Risks in Focus
According to market participants, immediate support for the Nifty is seen in the 26,150–26,200 range, while resistance is placed between 26,450 and 26,500.
Analysts cautioned that major geopolitical developments at the start of 2026 could significantly influence market direction. They highlighted that US military action in Venezuela has the potential to destabilise global geopolitics.
Additionally, the prolonged Russia-Ukraine conflict, rising unrest in Iran, possible reactions from the Iranian leadership, and renewed concerns over China’s intentions towards Taiwan continue to cloud the global outlook.
From India’s perspective, experts noted that the Venezuelan crisis could exert a medium- to long-term bearish influence on crude oil prices.
Lower crude prices would benefit the Indian economy by easing inflationary pressures and improving fiscal dynamics.
In the short term, analysts believe Indian markets may continue to show resilience, supported by record-high levels and sustained bullish momentum.
Strength in Bank Nifty, driven by robust credit growth, and expectations of strong Q3 results from banking and financial firms, remain key positives.
Across Asian markets, equities traded mostly higher. China’s Shanghai Composite rose 1.07 per cent, while Shenzhen surged 1.87 per cent. Japan’s Nikkei jumped 2.557 per cent, South Korea’s Kospi advanced 2.87 per cent, and Hong Kong’s Hang Seng Index slipped marginally by 0.12 per cent.
Overnight, US markets closed largely in positive territory. While the Nasdaq edged down 0.03 per cent, the S&P 500 gained 0.19 per cent, and the Dow Jones Industrial Average rose 0.66 per cent.
On January 2, foreign institutional investors purchased equities worth ₹290 crore. Domestic institutional investors also remained net buyers, investing ₹677 crore in equities, offering support to the markets amid persistent global uncertainties.
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