Sensex, Nifty Open Higher On Lower Crude Prices And EU Trade Deal Hopes

Indian benchmark indices opened with gains on Friday, supported by a drop in crude oil prices overnight and optimism surrounding a potential free trade agreement (FTA) between India and the European Union later this month.

As of 9:25 AM, the Sensex was up 239 points, or 0.29 per cent, at 83,622, while the Nifty rose 50 points, or 0.2 per cent, to 25,715.

Among broad-cap indices, the Nifty Midcap 100 gained 0.35 per cent and the Nifty Smallcap 100 added 0.11 per cent.

IT stocks led the sectoral rally with a 1.96 per cent rise, while the realty index gained 1.28 per cent. Media, metal, and pharma sectors inched down between 0.3 and 0.5 per cent.

Market analysts noted that the absence of major triggers is keeping directional moves muted.

A US Supreme Court ruling, which could have affected global markets, did not occur, and with no fixed timeline, it is unlikely to impact markets immediately.

The upcoming Q3 earnings will be key for stock-specific action, although broad-based rallies are unlikely.

Continued foreign institutional investor selling, indicated by rising short positions, is likely to offset minor market rallies.

Immediate support for the Nifty lies at 25,500–25,550, while resistance is placed at 25,800–25,900.

Asia-Pacific markets showed mixed trends in early trading. China’s Shanghai Composite fell 0.02 per cent, while Shenzhen gained 0.09 per cent.

Japan’s Nikkei declined 0.44 per cent and Hong Kong’s Hang Seng dropped 0.15 per cent. South Korea’s Kospi advanced 1.13 per cent.

Overnight in the US, major indices closed higher. The Nasdaq added 0.25 per cent, the S&P 500 rose 0.26 per cent, and the Dow climbed 0.6 per cent.

On January 14, FIIs sold net equities worth Rs 4,781 crore, while domestic institutional investors (DIIs) were net buyers of Rs 5,217 crore, reflecting continued domestic support in equity markets.

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