Indian stock markets opened higher today, continuing their upward trend for the third consecutive session as investors tread cautiously ahead of the Union Budget 2025. The Sensex began the day at 76,888.89, up from its previous close of 76,759.81, and is currently trading at 77,006.86, an increase of 247.05 points or 0.32%. Similarly, the Nifty opened at 23,296.75, compared to its previous close of 23,249.50, and is now at 23,350.60, up by 101.10 points or 0.43%.
The market was buoyed by strong global cues, with US markets ending higher on the back of impressive earnings reports from companies like Tesla and IBM. However, concerns arose following US President Donald Trump’s proposal to impose 25% tariffs on imports from Mexico and Canada, leading to a record high in gold prices at $2,799 per ounce.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the significance of the Budget in influencing market sentiment. He noted that the absence of a pre-Budget rally increases the likelihood of a post-Budget surge if growth-oriented measures like cuts in personal income tax are announced.
The defense sector saw the most gains, rising over 2%, while the media and IT sectors each declined by more than 1%. Public sector enterprises performed well, with the Nifty PSE index gaining nearly 2% as investors positioned themselves ahead of the Budget announcement.
Foreign institutional investors (FIIs) continued to be net sellers, offloading equities worth ₹4,582.95 crore on January 30, while domestic institutional investors (DIIs) bought shares worth ₹2,165.89 crore. FIIs have sold F&O positions worth ₹86,186 crores so far in January.
The upcoming Budget and Economic Survey are in focus, with key sectors to watch including railways, infrastructure, fertilizers, textiles, electric vehicles, and green energy stocks. In global markets, European shares hit record highs after the European Central Bank cut interest rates by 25 basis points, while oil prices rose above $77 per barrel amid trade tariff concerns.
Technical analysts suggest that the Nifty could find immediate support at 23,200, with resistance at 23,300. Companies like Sun Pharma, ONGC, Nestle, and others are set to announce their quarterly results today, which could impact market movement.
Despite the upcoming Budget announcement, the INDIA VIX, which measures market volatility, declined by 6.71% to 17.39, indicating reduced fear among investors.
In conclusion, the Indian stock markets are poised for a positive session as investors await crucial announcements in the Budget and Economic Survey, with various sectors and company results set to shape market trends for the day.
