Global Markets Rally Sets Stage For Mixed Opening In Indian Equities

Asian markets are gaining momentum on Monday as investors digest encouraging U.S. labor data and reassess rate expectations. This positive global backdrop has created a likely scenario for bargain hunters to step in after India’s markets suffered through five consecutive trading sessions of losses.

International Tailwinds Support Recovery Hopes

Wall Street delivered a strong finish on Friday, with all three major indices posting solid gains. The Dow Jones surged 237.96 points (0.5%) to close at 49,504.07, while the S&P 500 advanced 44.82 points (0.7%) to 6,966.28. The Nasdaq climbed 191.33 points (0.8%) to reach 23,671.35. These record-breaking closes were fueled by softer-than-expected U.S. employment figures in December, which shifted the narrative around monetary policy.

Market participants are now pricing in a 95% probability that the Federal Reserve will maintain interest rates at their current level during the January 27-28 meeting, according to CME FedWatch data. This more dovish outlook has rippled across Asian bourses, with regional indices trading in positive territory as traders reassess valuations.

India’s Market At A Crossroads

Indian equities face a delicate balancing act. The benchmark BSE Sensex shed 604.72 points (0.72%) to settle at 83,576.24 on Friday, while the NSE Nifty index declined 193.55 points (0.75%) to 25,683.30. This marked the fifth straight day of declines, driven by persistent concerns over geopolitical tensions, tariff-related uncertainties, and continued foreign portfolio outflows.

Despite these headwinds, a likely inflection point may be emerging. The combination of global monetary easing signals and oversold technical conditions is probable to attract value investors back into the market.

Corporate Earnings In The Spotlight

Multiple bellwether stocks are set to drive sentiment this week. Tech giants Tata Consultancy Services (TCS) and HCL Technologies will report their October-December quarter results today, providing crucial visibility into the sector’s performance. Their earnings are likely to offer clues about domestic consumption and export demand.

Beyond tech, several other companies are on the reporting calendar, including Maharashtra Scooters, Gujarat Hotels, Krishna Phoschem, and GTPL Hathway. IREDA has already captured attention after posting a 37.5% jump in net profit during the third quarter, signaling strong operational momentum. Avenue Supermarts, which operates the DMart chain, also impressed with an 18.3% rise in consolidated profit, suggesting retail resilience amid economic headwinds.

The coming session will likely be shaped by how these earnings align with market expectations and whether they can sustain momentum in a volatile environment.