The Indian equity markets opened on a subdued note on Thursday, with both benchmarks struggling to find direction amid weakness in global technology stocks spilling over to domestic markets.
At 9:21 am, the Sensex was trading at 83,645.60, down 93.53 points, while the Nifty hovered at 25,718.50, slipping 9.05 points.
Market sentiment remains cautious following Wednesday’s sharp rebound. Analysts indicate that sustaining the recent gains may be challenging.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, highlighted that the rally driven by the India–US trade deal is likely to encounter resistance. “The selloff in US tech stocks overnight will weigh on the Indian IT index, limiting the market’s ability to extend gains. High valuations further constrain a sustained rally,” he said.
Vijayakumar added that the upcoming monetary policy review on February 6 is unlikely to provide additional support, as the MPC is expected to maintain interest rates and its current stance. “The economy is now in a phase where monetary stimulus is not necessary,” he noted.
He further explained that Wednesday’s 639-point surge was largely driven by FII short covering and Rs 5,236 crore of buying in the cash market rather than fundamental strength. “Investors should focus on fairly valued largecaps. Sectors likely to benefit from higher exports to the US — such as textiles, apparels, gems and jewellery, and marine processing — may continue to see selective activity,” he added.
On the technical front, Anand James, Chief Market Strategist at Geojit, said the Nifty may see limited downside unless critical support levels break. “Dips may be restricted to 25,600, while a move above 25,840 could open the door to 25,923–26,020. Overall, the market is expected to remain choppy amid mixed global cues, stretched valuations, and IT sector pressure,” he said.
