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Sensex, Nifty Open Lower; India-EU Trade Deal, US Tariff Cues Eyed

Indian equity benchmarks Sensex and Nifty opened the trading week lower, pressured by persistent foreign institutional investor selling and mixed corporate results. Market sentiment is poised for a potential boost from the expected conclusion of a Free Trade Agreement between India and the European Union. Investors are also assessing cues from the US, which indicated a possible path to easing tariffs on India, and from strong quarterly results in China. The market's immediate direction will be influenced by a heavy slate of corporate earnings and the upcoming Union Budget.

Key Points: Sensex Falls as Markets Await India-EU FTA, US Tariff News

  • Markets open lower amid FII selling
  • India-EU FTA conclusion expected soon
  • US hints at path to ease tariffs on India
  • Over 200 quarterly results, Union Budget in focus
2 min read

Sensex, Nifty open lower as investors await India-EU FTA

Indian markets open lower amid FII selling. Focus shifts to India-EU FTA conclusion, potential US tariff relief, and upcoming Union Budget.

Sensex, Nifty open lower as investors await India-EU FTA
"Immediate support lies at 25,000 zone, while resistance is now anchored near 25,250-25,300 zone - market watchers"

Mumbai, Jan 27

The Indian equity markets opened the week lower on Tuesday amid persistent FII selling and mixed December quarter results.

As of 9.25 am, Sensex dipped 436 points, or 0.54 per cent, to reach 81,101, and Nifty declined 110 points, or 0.44 per cent to 24,938.

India and the European Union are set to announce the conclusion of negotiations on a Free Trade Agreement (FTA) at the India-EU Summit on Tuesday, that could boost the market sentiment later, especially in pharma, textiles, and chemicals sectors, analysts said.

Main broad-cap indices performed in line with the benchmark indices, as the Nifty Midcap 100 lost 0.53 per cent, and the Nifty Smallcap 100 eased 0.57 per cent.

All sectoral indices were trading in the red except metal and PSU bank. Nifty auto, realty and media were the largest losers, down 1.90 per cent, 2.15 per cent and 1.28 per cent, respectively.

Immediate support lies at 25,000 zone, while resistance is now anchored near 25,250-25,300 zone, market watchers said.

Meanwhile, the United States has indicated there may be a path to easing the 25 per cent tariff on India, imposed earlier over purchases of Russian oil, even as the levy remains in place for now.

China's industrial profits surged 0.6 per cent in CY25 from the prior year, breaking the trend of decline for consecutive three years, as manufacturing output expanded despite weak domestic demand.

In Asian markets, China's Shanghai index advanced 0.03 per cent, and Shenzhen eased 0.38 per cent, Japan's Nikkei added 0.4 per cent, while Hong Kong's Hang Seng Index gained 1.17 per cent. South Korea's Kospi added 1.81 per cent.

The US markets ended in the green in the last trading session as Nasdaq advanced 0.43 per cent. The S&P 500 gained 0.5 per cent, and the Dow added 0.64 per cent.

Investors look for cues from over 200 quarterly corporate results to be reported in the week, and from the Union Budget scheduled to be tabled on Sunday (February 1).

On January 20, foreign institutional investors (FIIs) sold net equities worth Rs 4,113 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 4,103 crore.

- IANS

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Reader Comments

S
Sarah B
Watching the FII selling figures closely. Rs 4,113 crore is a significant outflow. While DIIs are balancing it, the consistent selling by foreign investors is a concern. Hope the Budget and FTA news reverses this trend.
V
Vikram M
Auto and realty down over 1.5%... ouch. As someone with investments in these sectors, this is painful to see. Hopefully, the Budget has some good news for affordable housing and EV manufacturing to give them a boost.
P
Priya S
The US hinting at easing tariffs is a positive diplomatic development. It shows our foreign policy on energy imports is being understood. A good FTA with the EU and this tariff relief could be a double win for exports.
R
Rohit P
So much volatility! One day up 300 points, next day down 400. It's giving me anxiety. I know we should focus on fundamentals, but this rollercoaster is tough for small retail investors like me. 😅
K
Karthik V
With respect, I feel the market coverage sometimes focuses too much on daily ups and downs. For the common person, the real question is: will this FTA make medicines cheaper or create stable employment? That's the bottom line.
M
Michael C

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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