Indian equity benchmarks, the Nifty50 and BSE Sensex, commenced trading on Friday with a flat opening, reflecting cautious sentiment among investors. The Nifty50 hovered near the 25,250 mark, while the BSE Sensex recorded a decline of 50 points in early trade.
Market Performance in Early Hours
At 9:17 AM, the Nifty50 was trading at 25,263.15, registering a drop of 27 points or 0.11%. Simultaneously, the BSE Sensex stood at 82,257.49, down by 50 points or 0.061%. This subdued start follows a pattern of mixed global cues and domestic economic indicators.
Analyst Insights on Market Trends
Market analysts anticipate that the stock market will derive direction from several critical factors, including global trends, key macroeconomic signals, and the ongoing quarterly earnings season. Notable companies scheduled to announce results on Friday include JSW Steel, Shriram Finance, BPCL, Godrej Consumer, Cipla, MCX, and Piramal Finance.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, provided a detailed perspective on the market dynamics. He highlighted the persistent pattern of sustained Foreign Institutional Investor (FII) selling and Domestic Institutional Investor (DII) buying, which has dominated the market trend since 2025 and continues into 2026.
Dr. Vijayakumar remarked, “Whether this pattern will change with FIIs also turning buyers is the important question which investors have been asking for some time now. Partly, the Budget to be presented on February 1st will offer some insights, if there are some market-friendly proposals.”
He further emphasized that the FII stance towards India will largely be determined by the trend in India’s corporate earnings. Higher earnings growth is essential to ensure sustained buying by FIIs, as they have alternative investment options in markets with cheaper valuations and better earnings.
“Since earnings growth is some time away and the FII selling strategy is expected to continue, preempting any healthy rally, the market is heavily net short. FIIs are adding to the short positions on every rally triggered by some positive news. The broader market, where FII presence is limited, is likely to witness action in response to Q3 results,” Dr. Vijayakumar added.
Global Market Influences
On the global front, Wall Street ended higher on Thursday for a second consecutive session. Investor sentiment improved after US President Donald Trump withdrew tariff threats against European allies, while robust economic data underscored the resilience of the American economy.
Asian markets mirrored this positive lead on Friday, buoyed by encouraging US data and easing geopolitical tensions. In currency markets, the US dollar was on track for its steepest weekly decline in a year, following President Trump’s remarks on Greenland and a swift policy reversal that unsettled investors.
Commodities and Domestic Investment Flows
Gold hit another record high, while silver and platinum also extended gains to fresh peaks. This rally in precious metals is driven by a combination of geopolitical and economic uncertainties, a weaker US dollar, and expectations of interest rate cuts by the US Federal Reserve.
On the domestic front, foreign portfolio investors were net sellers of equities worth Rs 2,549 crore on Thursday. In contrast, domestic institutional investors provided substantial support to the market with net purchases of Rs 4,223 crore, highlighting the ongoing divergence in investment strategies.
Disclaimer: Recommendations and views on the stock market, other asset classes, or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.
