Markets fall on global cues, oil price surge; IT sector shows resilience 

Equity markets opened lower on Monday, with The Sensex opening significantly lower at 76,629.90 compared to its previous close of 77,378.91 and is currently trading at 76,775.24, down by 603.67 points or 0.78 per cent.

Similarly, the Nifty started the day at 23,195.40, below its previous close of 23,431.50, and slipped further to 23,246.95, losing 184.55 points or 0.79 per cent at 9.45 am.

The market weakness comes as Brent crude prices surged to a four-month high above $81 per barrel following new U.S. sanctions on Russian oil exports. “For India, the Brent crude rising to $81 is a concern,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Foreign institutional investors (FIIs) continued their selling streak for the sixth consecutive day, offloading equities worth ₹2,254.68 crore on January 10, while domestic institutional investors provided some support by purchasing shares worth ₹3,961.92 crore.

The U.S. jobs data released last week has dampened expectations of immediate interest rate cuts by the Federal Reserve.

“The blow out jobs data from the US with 2.56 lakh job creation in December against expectations of 1.65 lakhs means the rate cut expectations in 2025 is now down to one,” Vijayakumar noted.

Among sectors, information technology stocks showed resilience following TCS’s strong third-quarter results. “The IT index outperformed with a gain of over 1.9 per cent, whereas the PSU Banks and Realty indices suffered the most, dropping by more than 6 per cent,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

In early trading, IndusInd Bank led the gainers on the NSE, rising 3.15 per cent, followed by Britannia (+0.78 per cent), Axis Bank (+0.69 per cent), TCS (+0.54 per cent), and Hindustan Unilever (+0.40 per cent).

On the flip side, Apollo Hospitals emerged as the top loser, falling 2.63 per cent, followed by Adani Enterprises (-1.94 per cent), Grasim (-1.76 per cent), Adani Ports (-1.69 per cent), and HDFC Bank (-1.68 per cent).

Market volatility remained elevated, with the India VIX rising 1.76 per cent to 14.91. “The market breached the 200-day Simple Moving Average (SMA) support zone, and following this breakdown, selling pressure intensified,” Chouhan explained.

Technical analysts suggest the market could face further pressure in the near term. “The zone of 23340-23250 serves as a critical support level. The index is currently trading below the 50-week moving average, which is situated near 23650,” said Ameya Ranadive, Senior Technical Analyst at StoxBox.

The broader market sentiment remains cautious as investors await India’s Consumer Price Index (CPI) data due later today. The Industrial Production (IIP) data for November, which came in at 5.2 per cent, has shown signs of economic recovery from the second-quarter slowdown.

Looking ahead, market observers suggest that banking stocks could present opportunities for long-term investors. “With the US 10-year bond yield above 4.7 per cent, FIIs will continue to sell offering opportunities for long-term investors to buy reasonably priced large-caps, particularly in banking,” Vijayakumar added.

The market will also be watching HCL Technologies’ quarterly results and the listing of Standard Glass Lining Tech, which was subscribed 183 times during its initial public offering.