Indian markets opened lower in 2025, with Sensex and Nifty both dipping due to ongoing foreign fund outflows and cautious investor sentiment ahead of earnings season.
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Indian benchmark indices Sensex and Nifty opened lower on Wednesday, marking the first trading session of 2025. The downturn in the markets comes as persistent foreign fund outflows continue to negatively impact investor sentiment. Additionally, market participants remain cautious as they await the start of the earnings season next week.
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The 30-share BSE benchmark Sensex saw a decline of 171.81 points, settling at 77,967.20 despite a positive start to the trading session. Meanwhile, the NSE Nifty fell by 46.4 points to 23,598.40 after a muted opening.
Among the 30 stocks listed on the Sensex, key laggards included ICICI Bank, UltraTech Cement, Adani Ports, Tata Steel, Axis Bank, Maruti, and Kotak Mahindra Bank. On the other hand, stocks such as Asian Paints, Larsen & Toubro, Bajaj Finance, Infosys, HCL Tech, and Bajaj Finserv witnessed gains.
According to exchange data, Foreign Institutional Investors (FIIs) continued to offload equities worth Rs 4,645.22 crore on Tuesday, further weighing on market sentiment.
Commenting on the market outlook, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The New Year begins on a somber note for the Indian equity market. The near-term trend appears weak, with macroeconomic conditions dominated by sluggish GDP growth and earnings. Headwinds such as a strong dollar and high US bond yields are likely to affect the market through continued FII selling, at least in the early days of 2025. While DII buying may counterbalance FII selling, the current sentiment leans towards FIIs, as valuations remain high and growth and earnings have yet to show signs of recovery.”
In global markets, US stocks ended lower on Tuesday, continuing a negative trend. Meanwhile, the global oil benchmark, Brent crude, gained 0.88 percent, rising to USD 74.64 per barrel.
On Tuesday, the Sensex had dropped by 109.12 points, or 0.14 percent, to close at 78,139.01. The Nifty fell marginally by 0.10 points, settling at 23,644.80.
Despite these early losses, 2024 saw positive growth overall, with the Sensex climbing 5,898.75 points, or 8.16 percent, and the Nifty rising by 1,913.4 points, or 8.80 percent, throughout the year.
As per PTI reports, investors are awaiting more data to understand whether the market will recover or continue to be under pressure from these ongoing challenges.
9With inputs from PTI)
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