Indian benchmark indices are poised for a weak start on January 19, with early indicators suggesting downward pressure from global market developments. The GIFT Nifty, trading at approximately 25,592, signals a gap-down opening for domestic markets, reflecting broader concerns across international financial markets.

Previous Session Performance

Despite the anticipated weak opening, Indian markets had shown resilience in the previous volatile session on January 16. The market performance during this session demonstrated mixed investor sentiment:

Market breadth indicated cautious trading, with 1,757 shares advancing, 2,305 shares declining, and 133 shares remaining unchanged during the session.

Global Market Overview

International markets presented a challenging backdrop for Asian trading sessions. Asia-Pacific markets experienced broad-based declines as investors evaluated geopolitical developments and awaited key economic data from China. The regional market weakness stemmed from concerns over policy announcements and their potential economic implications.

US equity markets concluded Friday's session with marginal losses across major indices. The weekly performance reflected cautious investor sentiment as fourth-quarter earnings season commenced:

Currency and Commodity Movements

Currency markets showed mixed trends with the US dollar declining against Group-of-10 peers as investors sought haven assets including the Japanese yen and Swiss franc. Asian currencies traded mostly higher in early Monday sessions, with the Thai Baht leading gains, followed by the Japanese Yen, Singapore Dollar, South Korean Won, and Malaysian Ringgit.

Commodity markets experienced significant movements, particularly in precious metals. Gold and silver reached record highs amid escalating geopolitical tensions and concerns over potential trade disruptions. Oil prices remained relatively stable after previous session gains, as regional developments in the Middle East influenced supply considerations.

Foreign Investment Flows

Institutional investment patterns on January 16 revealed contrasting approaches between foreign and domestic investors:

The substantial foreign selling pressure was partially offset by domestic institutional buying, indicating continued confidence among local investors despite global uncertainties. This divergence in investment flows highlights the complex dynamics influencing Indian equity markets amid evolving international conditions.

Indian benchmark indices are poised for a positive opening on January 13, with early indicators suggesting continued momentum from the previous session's recovery. The GIFT Nifty is trading higher at around 25,924, providing encouraging signals for domestic markets after snapping a prolonged losing streak.

Market Performance Overview

Indian equity benchmarks demonstrated resilience on January 12, ending in green territory during a volatile session. The recovery marked a significant turnaround after five consecutive days of losses, with both indices settling near their daily highs.

Global Market Developments

Asian Markets: Asian shares climbed to near record levels, supported by optimism over earnings and regional economic growth. Investors have broadened their focus beyond US markets, contributing to the positive sentiment across the region.

US Equities: American markets registered record closing highs on Monday, with technology companies and retailer Walmart leading gains. The performance came despite concerns about the US Justice Department's criminal investigation of Federal Reserve Chair Jerome Powell.

Bond Markets and Currency Movements

US Treasury yields remained relatively stable, with the 10-year yield holding at 4.17% and 2-year yield at 3.53%. The dollar index showed little movement in early Tuesday trade against major currencies.

Asian currencies displayed mixed performance, with the South Korean Won leading declines, followed by the Thai Baht, Indonesian Rupiah, Japanese Yen, and Philippine Peso. However, the Chinese Renminbi, Taiwan Dollar, and Malaysian Ringgit posted marginal gains.

Institutional Investment Flows

Foreign Institutional Investors maintained their selling pressure for the sixth consecutive session on January 12, offloading equities worth approximately ₹3,638 crore. This continued outflow reflects ongoing concerns among international investors.

In contrast, Domestic Institutional Investors demonstrated strong buying interest, remaining net buyers with purchases exceeding ₹5,800 crore. This domestic support has been crucial in providing stability to the markets amid foreign selling pressure.

Commodity Market Updates

Commodity markets showed mixed trends, with oil prices trading with marginal gains in early trade. Precious metals experienced varied performance, as spot gold steadied while silver slipped after both metals reached record highs on Monday.

The positive GIFT Nifty reading at 25,924 suggests market participants are optimistic about continuing the recovery momentum established in the previous session, particularly given the supportive global market environment and strong domestic institutional buying.