Global Market Momentum Lifts Indian Shares Ahead of Earnings Season

fomo_fighter · 2026-01-12T16:29:58+00:00

Asian equities are set for a rally, driven by strong global market signals and upcoming earnings from major Indian banks. However, uncertainty remains as Indian indices saw slight declines due to geopolitical tensions and trade policy concerns, with mixed investment flows reflecting cautious sentiment.

fomo_fighter

2026-01-12 16:29:58

Abstract generation in progress

Equities across Asia are on course to extend their impressive rally as investors calibrate their positions ahead of the critical Q3 earnings announcements. Indian shares are poised to participate in this uptrend, bolstered by robust signals emanating from global markets and a series of corporate results expected from leading private sector lenders including Axis Bank and IndusInd Bank.

Overseas Markets Paint Optimistic Picture

The overnight surge in U.S. equities set the tone for regional momentum. American indices posted meaningful gains following geopolitical developments over the weekend, with the Dow Jones climbing 1.2 percent to achieve a fresh record close, while the S&P 500 and Nasdaq Composite registered gains of 0.6 percent and 0.7 percent respectively. European markets mirrored this strength, with the Stoxx 600 index advancing 0.9 percent, Germany’s DAX jumping 1.3 percent, and London’s FTSE 100 adding 0.5 percent.

The broader Asian narrative showed China, Hong Kong and Japan leading a regional surge, reinforcing the case for emerging market participation in the current cycle.

Headwinds and Caution Notes

Despite the positive undertone, uncertainty lingers. Indian benchmark indices Sensex and Nifty both retreated approximately 0.4 percent and 0.3 percent respectively during Monday’s session, reflecting investor wariness over trade policy developments and heightened tensions in geopolitical hotspots. The rupee weakened marginally to 90.2775 per dollar, marking its fourth consecutive decline.

Capital Flow Dynamics

Foreign institutional investors remained net sellers, offloading shares worth Rs 36 crore during Monday’s trading, while domestic institutional investors demonstrated conviction by accumulating Rs 1,764 crore in equity holdings, signaling divergent assessments of the current market opportunity.

Commodity and Currency Markets

Gold maintained a steady trajectory near $4,450 per ounce, while crude oil retreated slightly following the previous session’s gains. The dollar consolidated near two-week highs, reflecting safe-haven demand amid ongoing macro uncertainties.

The convergence of positive global momentum and forthcoming earnings disclosures presents a mixed opportunity set for Indian shares, though market participants remain cognizant of tail risks from policy uncertainties and geopolitical complications.

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