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Sensex, Nifty Rally on Global Cues; FII Selling Pattern Persists

Indian benchmark indices opened higher, extending gains into a second consecutive session amid positive global cues and easing geopolitical concerns. Most sectoral indices traded in the green, with metals leading the gains, while media and PSU banks were notable losers. Market analysts note the persistent trend of Foreign Institutional Investors selling and Domestic Institutional Investors buying, which is expected to continue until corporate earnings improve. Asian and US markets also posted gains, supporting the positive sentiment.

Key Points: Sensex, Nifty Open Higher as Geopolitical Tensions Ease

  • Sensex gains 132 points
  • All sectors green except media, PSU banks
  • Asia-Pacific markets rise
  • FII selling, DII buying trend continues
  • Nifty support at 25,100-25,150 zone
2 min read

Sensex, Nifty open on positive note as geopolitical tensions ease

Indian stock markets gain for second session, tracking global rally. Analysis of FII selling, DII buying, and key support levels for Nifty.

"FIIs are adding to the short positions on every rally triggered by some positive news - Analysts"

Mumbai, Jan 23

The Indian stock market opened higher on Friday, extending gains for the second consecutive trading session while tracking positive global cues.

As of 9.30 am, the Sensex added 132 points, or 0.16 per cent to reach 82,440 and the Nifty advanced 52 points, or 0.21 per cent to 25,342.

Main broad-cap indices performed in line with benchmark indices, as Nifty Midcap 100 added 0.32 per cent, and the Nifty Smallcap 100 advanced 0.24 per cent.

All sectoral indices were trading in the green except Nifty media, PSU bank, realty as well as oil and gas.The top gainer was Nifty metal, up over 0.9 per cent. Nifty Media was the notable loser, down 0.74 per cent.

Immediate support for Nifty is placed at 25,100-25,150 zone, while key support is seen at 25,400-25,450 zone, market watchers said.

Asia-Pacific markets rose in the morning session, tracking Wall Street gains as geopolitical concerns moderated. Investor optimism rose as the Bank of Japan kept interest rates steady.

The pattern of sustained FII selling and DII buying, which dominated the market trend in 2025, have continued in 2026 so far. Investors look for a change in this pattern from cues in Budget 2026.

The FII's stance on India depends on growth in India's corporate earnings as they can invest in other markets with cheaper valuations and better earnings, analysts said.

Since earnings growth may take some time, FII selling is expected to continue, pre-empting any healthy rally. FIIs are adding to the short positions on every rally triggered by some positive news, they added.

In Asian markets, China's Shanghai index added 0.27 per cent, and Shenzhen gained 0.24 per cent, Japan's Nikkei added 0.5 per cent, while Hong Kong's Hang Seng Index advanced 0.29 per cent. South Korea's Kospi added 0.92 per cent.

The US markets ended in the green overnight as Nasdaq advanced 0.91 per cent. The S&P 500 gained 0.55 per cent, and the Dow added 0.63 per cent.

On January 22, foreign institutional investors (FIIs) sold net equities worth Rs 2,550 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 4,223 crore.

- IANS

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Reader Comments

P
Priya S
Positive start is always welcome, but these gains seem very modest. 0.16% on Sensex is barely anything. The real story is in the details - FIIs selling ₹2550 crore in a single day! Until that trend reverses, any rally will be short-lived. Our markets need stronger earnings growth.
R
Rohit P
Metals sector leading the gains! 🚀 This is a good sign for our core industries. With global tensions easing, commodity prices might stabilize, which is beneficial. Let's see if the momentum holds throughout the trading session. Fingers crossed for a strong closing above 25,400 on Nifty.
S
Sarah B
Interesting to see the global correlation. Wall Street up, Asia up, we are up. It shows how interconnected markets are now. The Bank of Japan holding rates steady is a bigger global cue than many realize. As an NRI investor, I'm cautiously optimistic but watching the FII/DII data closely.
V
Vikram M
The article rightly points out that FIIs are adding short positions on every rally. This is why we retail investors get trapped. We see green, we buy, and then the rally fizzles out. Need to be very selective and not get carried away by these small upticks. SIP in good funds is the way.
K
Karthik V
All eyes on Budget 2026 now. That's the next big trigger. The government needs to introduce policies that boost corporate profitability. Until earnings catch up to valuations, this FII selling overhang will remain. Good to see DIIs being net buyers though, shows domestic confidence.

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