Markets edge higher as Trump returns; Kotak Bank, Wipro lead gains
Equity markets opened higher on Monday, tracking positive global cues ahead of Donald Trump’s return to the White House, with banking and IT stocks leading the gains amid mixed global sentiment and continued foreign investor outflows.
The Sensex opened higher at 76,978.53 compared to its previous close of 76,619.33 and is currently at 76,748.78, gaining 129.45 points or 0.17 per cent. Meanwhile, the Nifty opened at 23,290.40 against its previous close of 23,203.20 and is trading at 23,214.60, up by 11.40 points or 0.05 per cent.
Kotak Mahindra Bank emerged as the top gainer, surging 9.02 per cent following strong Q3 results, followed by Wipro which jumped 7.68 per cent. Other gainers included State Bank of India (+0.75 per cent), NTPC (+0.57 per cent), and Hindustan Unilever (+0.42 per cent). On the downside, Shriram Finance led the losses (-3.85 per cent), followed by SBI Life (-2.95 per cent), IndusInd Bank (-2.21 per cent), BPCL (-1.59 per cent), and HDFC Life (-1.45 per cent).
“Globally stock markets will be in a wait and watch mode as Trump 2.0 unfolds today. Many executive actions, particularly on immigration, are expected from the President starting from day one,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Foreign institutional investors (FIIs) have remained net sellers, offloading ₹43,258 crore in January, while domestic institutional investors (DIIs) bought shares worth ₹46,794.26 crore, creating a push-pull dynamic in the market.
“The current situation is not favorable for mid-term-to-short-term buying, making it important to stabilize the rupee to protect FPI’s interests in our market,” noted VLA Ambala, Co-Founder of Stock Market Today.
The Indian rupee opened around 86.53 against the US dollar, with traders expecting it to move in the 86.40-86.65 range during the day.
On the technical front, Sameet Chavan, Head Research at Angel One, said, “The benchmark index has experienced a breakdown below its November low and has failed to make an initial attempt to rise above this level during the week, highlighting the importance of the breakdown neckline.”
In the commodities market, crude oil futures traded flat as markets awaited Trump’s inauguration. March Brent oil futures were at $80.77, down 0.02 per cent, while WTI crude traded at $77.45, up 0.08 per cent.
Gold prices showed volatility as tensions in the Middle East eased. “Gold has support at $2678-2660 while resistance at $2710-2727,” said Rahul Kalantri, VP Commodities at Mehta Equities.
The market breadth suggested a cautious stance, with the INDIA VIX trading at 15.7475, up 1.83 per cent from the previous session.
“The Nifty50 index currently finds itself in a no-trade zone, with immediate resistance around 23430-23340 and support located near 23060-23000,” according to Ameya Ranadive, Sr Technical Analyst at StoxBox.
Sectors to watch include telecom stocks amid reports of potential AGR dues waiver, metal stocks buoyed by China’s economic performance, and defense stocks following substantial government orders. The market also awaits more Q3 results this week, with several major companies scheduled to report their earnings.
