Indian equity markets opened on a positive note on Monday, reflecting strong cues from Asian markets as investors anticipated key developments, including the swearing-in of Donald Trump as the 47th President of the United States. The benchmark indices displayed resilience in early trade, with the BSE Sensex rising nearly 100 points to trade at 76,701.3, while the NSE Nifty hovered around 23,215.65, remaining almost flat.
Gains in key banking and technology stocks provided support to the indices, with Kotak Mahindra Bank, Wipro, Bharti Airtel, and State Bank of India leading the charge. However, the market faced some resistance from heavyweights such as ICICI Bank, HDFC Bank, SBI Life, Infosys, and Tata Motors, which dragged on the overall sentiment. Sectorally, nine out of the twelve major sectors on the NSE traded in the green, with Nifty Media and Nifty Realty registering the highest gains. Conversely, Nifty Metal and Nifty Auto bore the brunt of early trade losses, signaling mixed sentiment across various industries.
Market analysts noted that global investors were treading cautiously ahead of the formal assumption of office by Donald Trump, which is expected to bring significant policy shifts. Speculations surrounding his immediate executive actions, particularly on immigration and economic policies, have kept traders in a wait-and-watch mode. Experts highlighted that Donald Trump’s return to the White House is likely to trigger a new wave of regulatory changes, potentially impacting global trade and financial markets.
Adding to the market’s outlook, the latest report from the International Monetary Fund projected a robust 6.5 percent growth for India in 2025 and 2026, despite concerns about recent economic slowdowns. This optimistic projection comes as a reassuring factor for investors, suggesting that India’s economy remains on a strong footing despite external uncertainties. Experts believe this growth outlook could provide long-term support to market sentiment, even as near-term fluctuations persist due to global developments.
On the currency front, the Indian rupee also opened stronger, appreciating by 13 paise to 86.47 against the US dollar in early trade. The currency movement reflects stable investor confidence, aided by positive economic projections and expectations of a steady policy environment.
In the United States, equity markets ended on a high note last Friday, with the S&P 500 and Dow Jones Industrial Average posting their strongest weekly gains in recent months. Market participants anticipate further volatility as they prepare for the policy direction under Donald Trump’s administration. Analysts suggest that the markets could witness sharper movements based on Donald Trump’s initial executive decisions and broader economic strategy.
Back home, experts noted that this week would be crucial for domestic investors, as several major companies are set to announce their third-quarter earnings. The market’s response to these results will not only depend on financial performance but also on management commentary and forward guidance. Investors are expected to keenly observe these developments, as corporate earnings often play a pivotal role in shaping short-term market trends.
According to Akshay Chinchalkar, Head of Research at Axis Securities, the current market trajectory presents an important opportunity for both bulls and bears. He pointed out that the smallcap and midcap segments have shown sustained strength, with four consecutive days of gains through last Friday—the longest winning streak since December 11. This trend suggests that market sentiment is gradually tilting towards a risk-on approach, as investors display a greater appetite for equities.
As global and domestic markets navigate through a series of critical events, ranging from Donald Trump’s policy rollout to corporate earnings and global economic trends, the upcoming days are expected to set the tone for market movements. With a mix of optimism, caution, and anticipation, traders and investors remain focused on key triggers that could shape the near-term and long-term outlook for Indian and global financial markets.
