Indian equity benchmarks are poised for a tentative opening on Friday, January 9, following a brutal sell-off in the previous session that saw the Sensex post its steepest single-day decline in over four months. Mixed signals from Asian peers and lingering global trade anxieties are keeping investor sentiment on edge.
Market Recap: A Day of Heavy Losses
On Thursday, domestic markets witnessed a broad-based and intense sell-off, mirroring weakness in global markets. The 30-share BSE Sensex plummeted 780 points, or 0.92%, to settle at 84,180.96. According to market data, this marked the index's most significant percentage drop since August 26, 2025.
The Nifty 50 also cracked below the crucial 25,900 mark, closing near the day's low at 25,876.85, down nearly 1%. Analysts attributed the fall to a combination of feeble global cues, geopolitical tensions, and persistent foreign institutional investor (FII) selling.
"Markets ended Thursday’s session on a weaker note as selling pressure intensified," said Ajit Mishra, SVP of Research at Religare Broking. He pointed to deteriorating sentiment due to global trade concerns and a weak rupee, which collectively suppressed risk appetite.
What's Driving the Caution Today?
Market participants are navigating a complex web of domestic and international factors. Ponmudi R, CEO of Enrich Money, highlighted that risk appetite remains subdued. "Persistent concerns over potential U.S. tariff actions linked to India’s Russian oil imports have kept sentiment fragile," he noted, adding that a lack of progress in US-India trade talks is reinforcing institutional caution.
The immediate focus will be on whether the markets can absorb the recent selling pressure and find some stability in early trade. Early trends from Gift Nifty indicated a slightly positive start, with the futures contract trading at 26,002.5, up about 35 points or 0.13% from Nifty futures' previous close.
Global Market Check
Asian markets presented a mixed picture on Friday. While Japan's Nikkei 225 advanced 0.54%, South Korea's Kospi slipped 0.41%. Investors were also cautious ahead of China's inflation data release.
On Wall Street, the Dow Jones Industrial Average rose 0.55%, but the tech-heavy Nasdaq Composite fell 0.44% as investors rotated out of technology stocks. The S&P 500 ended nearly flat.
Commodities and Currency Movements
In the commodities space, oil prices rebounded sharply, jumping over 3% to a two-week high on supply disruption concerns from regions like Russia and Venezuela. Brent crude settled at $61.99 a barrel.
Gold prices were largely steady as investors awaited key U.S. jobs data. Meanwhile, the U.S. dollar strengthened for a third consecutive day, with the dollar index rising to 98.883, adding pressure on emerging market currencies.
As the earnings season approaches, trading activity is expected to remain cautious and stock-specific. The market's direction will heavily depend on global cues, FII flow trends, and developments on the geopolitical and trade fronts.
