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Sensex, Nifty Open Higher Amid FPI Selling, Cautious Budget Outlook

Indian equity benchmarks opened marginally higher but are expected to trade in a cautious, range-bound manner due to persistent foreign portfolio investor selling and mixed global cues. Market experts note limited expectations from the upcoming Union Budget, though hopes for an India-EU trade deal provide a potential sentiment boost. Sectoral trends were mixed in early trade, with IT gaining while auto and pharma declined. Several major companies, including Reliance Industries and Wipro, are set to announce their quarterly results today.

Key Points: Sensex, Nifty Edge Up; FPI Selling, Mixed Global Cues Weigh

  • Markets open higher but cautious
  • FPI selling & mixed global cues weigh
  • Limited expectations from Union Budget
  • Key Q3 results due today
  • India-EU trade deal hopes provide sentiment boost
3 min read

Sensex, Nifty edge up in early trade amid FPI selling, mixed global cues & limited budget expectations

Indian markets open marginally higher but remain range-bound due to FPI selling, mixed global cues, and limited Union Budget expectations. Key sectors and results in focus.

"Indian markets are currently in a 'wait and watch' mode. - Ajay Bagga"

New Delhi, January 16

The domestic equity benchmarks opened marginally higher on Thursday but are expected to remain cautious and range-bound through the session, weighed down by persistent foreign portfolio investor selling, mixed global cues and limited expectations from the upcoming Union Budget.

The Nifty 50 opened at 25,696.05, gaining 30.45 points or 0.12 per cent, while the BSE Sensex began the day at 83,670.79, up 288.08 points or 0.35 per cent.

Ajay Bagga, Market expert told ANI that Indian markets are currently in a "wait and watch" mode. He said "There are not very high expectations from the Union Budget 2026 so far has been like 2025, with IPOs seeing a "lottery investment for listing gains" mentality while FPI selling in the secondary markets stays elevated. Indian markets will benefit from a sentiment boost following the top Indian bureaucrat in the Commerce Ministry holding out hopes for an India EU trade deal to be signed by 26th January and saying that an India US trade deal is progressing well. The wait is for a positive news on the trade deal front. An EU deal will be a morale booster as the EU represents a huge potential market for Indian goods".

In the broader market, indices opened in green. The Nifty 100 rose 0.12 per cent, the Nifty Midcap 100 gained 0.13 per cent and the Nifty Smallcap 100 was up 0.10 per cent in early trade.

Sectorally, trends were mixed. On the NSE, Nifty FMCG gained 0.48 per cent, Nifty IT surged 1.61 per cent, Nifty PSU Bank rose 0.18 per cent and Nifty Metal added 0.30 per cent. On the downside, Nifty Auto slipped 0.3 per cent, Nifty Pharma fell 0.22 per cent and Nifty Media also declined.

Several major companies are set to announce their Q3 results today, including Reliance Industries, Wipro, Tech Mahindra, Polycab India, L&T Finance, Federal Bank, JSW Infrastructure, Poonawalla Fincorp, Central Bank of India, JB Chemicals and Pharmaceuticals and Tata Technologies.

Ponmudi R, CEO of Enrich Money, said "Indian equity markets are set to begin the session on a cautious and range-bound note as multiple global headwinds continue to cap risk appetite. Ongoing geopolitical developments and tariff-related uncertainties are clouding near-term visibility. Sentiment also remains restrained due to persistent FII outflows and mixed reactions to Q3 earnings, which have made participants more selective and defensive in their approach".

On the fund flow front for January 14, FIIs sold equities worth Rs 4,781.2 crore, while DIIs were net buyers to the tune of Rs 5,217.3 crore.

Globally, US markets received support from easing Iran-related tensions, strong results from TSMC boosting AI and semiconductor stocks, and gains in financials led by Goldman Sachs and Morgan Stanley. Asian markets, however, showed a mixed trend in early trade, adding to the cautious tone for Indian equities.

- ANI

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Reader Comments

P
Priya S
Good to see IT sector performing well. As someone working in the industry, it shows global demand for our services remains strong despite the headwinds. The mixed cues mean we need to be patient and not expect runaway rallies. SIP in good mutual funds is the way.
M
Michael C
Interesting analysis. The point about IPOs being seen as a "lottery" is spot on. Too much speculation and not enough focus on fundamentals. The market needs stability from long-term policies, not just budget sops. A trade deal with the EU would be a game-changer for export-oriented sectors.
R
Rohit P
FII selling over ₹4,700 crore in a single day is worrying yaar. But DIIs buying over ₹5,200 crore shows domestic institutions have faith. It's a tug of war. The real test is today with Reliance and other big results. Jai ho DIIs! 🇮🇳
S
Sarah B
Respectfully, while the experts talk of global cues and trade deals, the common investor is just confused. Articles like this list so many factors it's hard to know what to focus on. A simpler takeaway on what this means for my monthly SIP would be more helpful.
K
Karthik V
Midcap and Smallcap also in green is a positive sign. Often when FPIs sell, these segments get hit hardest. Cautious optimism is the mood. Let's see what Reliance results bring. The market needs a heavyweight to deliver and lead the charge.

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