Indian equity markets are expected to remain cautious on Friday, January 9, amid continued foreign fund outflows, mixed global cues, and stock-specific action driven by corporate developments and quarterly updates.
In the previous session, benchmark indices closed sharply lower. The BSE Sensex fell 780 points to 84,810, while the Nifty slipped 263 points to 25,876. Broader markets underperformed, with the Midcap and Smallcap indices declining 948 points and 1,023 points, respectively.
Foreign institutional investors (FIIs) remained net sellers, offloading equities worth ₹3,367.12 crore, while domestic institutional investors (DIIs) provided partial support with net purchases of ₹3,701.17 crore. On a month-to-date basis, FIIs have sold ₹8,017.51 crore, whereas DIIs have bought ₹12,307.18 crore.
Overnight global cues were mixed. US markets saw heightened volatility after President Donald Trump indicated he would seek a nearly 50% increase in the US military budget, triggering a global rally in defence stocks. Geopolitical tensions continued to influence risk sentiment across asset classes.
In commodities, Brent crude hovered near $60 a barrel, while gold traded close to $4,429 an ounce, reflecting sustained demand for safe-haven assets. The India VIX rose 6.53% to 10.60, signalling higher near-term volatility.
On the corporate front, several stocks remained under pressure, with 32 companies closing below their previous 52-week lows, including Bata, Whirlpool, Page Industries, United Breweries, Jubilant Foodworks, and Colgate Palmolive. Meanwhile, Larsen & Toubro gained attention after securing an Indian Army order related to the upgrade and modernization of Pinaka rocket launcher systems.
Investors are expected to track global developments, institutional flows, and earnings-related updates closely as markets navigate heightened volatility in the near term.
