Market opens with volatility amid mixed global cues and earnings sentiment
The stock market opened with cautious trading on Friday, January 24, 2025, as investors navigated a complex landscape of global economic signals, corporate earnings, and institutional investor movements. The benchmark Sensex and Nifty indices showed initial volatility, reflecting the nuanced market sentiment.
At the market open, the Sensex opened slightly lower at 76,455.35 compared to its previous close of 76,520.38 and is currently trading at 76,409.39, down by 110.99 points or 0.15 per cent. Similarly, the Nifty opened at 23,183.90 against its previous close of 23,205.35 and is now at 23,154.40, declining by 50.95 points or 0.22 per cent.
Hardik Matalia from Choice Broking noted, “The benchmark indices are expected to open positive, with Nifty finding potential support at 23,100 and immediate resistance at 23,300.” The market’s trajectory remains delicate, with key technical levels closely watched by traders and analysts.
Foreign institutional investors continued their selling spree, offloading equities worth ₹5,462.52 crore on January 23, contrasting with domestic institutional investors’ purchase of ₹3,712 crore. Dr. V K Vijayakumar from Geojit Financial Services highlighted the potential pressure on largecaps, particularly banking stocks, due to these outflows.
Sector-specific performances showed varied trends. The Nifty IT index emerged as a leader, gaining nearly 2 per cent, buoyed by promising Q3 results and management commentaries suggesting improved sector prospects. Power Grid (+1.16 per cent), Shriram Finance (+1.02 per cent), and BPCL (+0.81 per cent) led the gainers, while Dr. Reddy’s (-4.60 per cent) and Apollo Hospitals (-1.81 per cent) were among the top losers.
Global market indicators provided mixed signals. The S&P 500 reached record highs, with President Donald Trump calling for interest rate cuts. Prashanth Tapse from Mehta Equities noted ongoing uncertainty around tariff plans and highlighted upcoming events like the FOMC meeting and Union Budget as potential market influencers.
Technical analysts like Shrikant Chouhan from Kotak Securities observed a potential pullback formation, suggesting that if the Nifty sustains above 23,000, further upward movement could be possible. The derivative market data indicates strong support levels around 23,000 and 23,200, with resistance emerging around 23,600.
The Bank of Japan’s potential interest rate hike and global central bank policies continue to create ripples in international markets. Ameya Ranadive from StoxBox emphasized the importance of monitoring these global cues, particularly the Bank of Japan’s monetary policy meeting.
Investors are advised to remain cautious, with market participants recommended to consider value stocks and maintain a longer-term investment horizon. The upcoming Union Budget and global economic indicators will likely play crucial roles in shaping market sentiment in the coming weeks.
As the trading session progresses, market participants will closely monitor corporate earnings, global economic developments, and institutional investor movements to gauge the market’s potential direction.
