Indian equity markets are set for a cautious start on Thursday, January 8, as mixed global cues and the weekly expiry of Sensex futures weigh on sentiment. Early indications from GIFT Nifty pointed to a subdued opening for benchmark indices.
At around 6:46 AM, GIFT Nifty futures were trading 42.8 points lower at 26,192.5, signalling a weak start for domestic markets. Investor sentiment is also expected to be influenced by the weekly Sensex expiry.
In the Asia-Pacific region, markets traded mixed after Wall Street ended lower overnight amid rising geopolitical tensions. Remarks from US President Donald Trump, stating that he would not allow defence companies to issue dividends or undertake share buybacks until concerns around executive compensation and production challenges are addressed, added to caution.
Japan’s Nikkei 225 rose 0.46%, South Korea’s Kospi gained 0.12%, and Australia’s S&P/ASX 200 advanced 0.21% in early trade. US equity futures were largely flat during Asian hours.
Overnight, US markets snapped a three-day winning streak. The S&P 500 fell 0.3% and the Dow Jones Industrial Average declined 0.6%. The Nasdaq Composite, however, edged up nearly 0.2%, supported by a 2.4% rally in Google parent Alphabet, which briefly overtook Apple in market capitalisation for the first time since 2019.
On the data front, investors are awaiting initial jobless claims and trade data from the US, along with unemployment and producer price index (PPI) data from the Euro Area.
FII–DII Activity:
Foreign institutional investors were net sellers to the tune of ₹1,668.8 crore on January 7, while domestic institutional investors net bought shares worth ₹2,991.95 crore.
IPO Watch:
Primary market activity remains muted in the mainboard segment. In the SME space, the Defrail Technologies IPO opens for subscription today, while the Victory Electric Vehicles International IPO and Yajur Fibres IPO enter Day 2. The Gabion Technologies India IPO is on its final day of bidding.
Commodity Check:
Oil prices traded mixed. Brent crude slipped 1.22% to $59.96 per barrel, while US WTI crude rose 0.55% to $56.30 per barrel.
