Indian equity markets are expected to begin Thursday on a subdued note, following weak global signals and ongoing foreign investor sell-offs. On Wednesday, markets closed with slight losses due to FPI outflows and concerns about corporate earnings. Foreign institutional investors sold shares worth ₹3,362.18 crore on January 8, continuing their selling spree.

Key Q3FY25 earnings reports from Tata Consultancy Services (TCS), IREDA, Tata Elxsi, and GTPL Hathway are anticipated to drive market sentiment today. While global trends remain weak, optimism arises from reports predicting modest revenue and profit recovery in the October-December quarter after a slow start to FY25.

Revised gold import data from the commerce ministry has adjusted November imports downward to $9.84 billion, reducing the trade deficit for November to $32.84 billion. Meanwhile, the NSE announced plans to enhance its colocation facility, indicating infrastructural growth.

On the sectoral front, solar stocks could see action as a report projects India’s solar capacity to jump from 82 GW to 214 GW by 2030. In metals, CRISIL highlighted the potential impact of a proposed safeguard duty on steel imports, which could push steel prices higher in 2025. Consumer goods stocks may remain muted amid sluggish urban demand and rising product prices.

Globally, Wall Street closed mostly positive as investors analyzed mixed job data and concerns over inflation policies by President-elect Donald Trump. However, Asian markets traded mostly lower on Thursday following Wall Street’s volatility.

On Wednesday, Indian benchmarks recovered from intraday losses but still ended flat with a negative bias. Gains in Oil & Gas and TECK stocks helped offset losses. Growth concerns persist as the NSO projects GDP growth to slow to 6.4% in FY25, below the RBI’s estimate of 6.6%. FII outflows, totaling ₹1,491.46 crore on January 7, further pressured markets.

The Sensex slipped 50.62 points to close at 78,148.49, while the Nifty dropped 18.95 points to 23,688.95. Late recovery in beaten-down blue-chip stocks and optimism about budgetary reforms helped limit losses.