Indian equity markets started on a positive note on Friday but quickly fell into negative territory, mirroring weak sentiment from Asian markets. Concerns over U.S. policy direction under the Trump administration and China’s economic outlook weighed on investor confidence. The Sensex and Nifty opened under pressure, with foreign institutional investors (FIIs) selling shares worth ₹7,170.87 crore on January 9. A private report predicting a continued decline of the rupee against a strong U.S. dollar added to the gloom, driven by expectations of a Reserve Bank of India (RBI) rate cut next month.

India Ratings expressed skepticism about a significant recovery in corporate capital expenditure in FY26, citing uncertainty in domestic and global demand. They noted that interest rates are not the primary factor behind weak investment sentiment.

Globally, Asian markets mostly traded in the red, influenced by mixed cues from European markets and Wall Street’s closure. Traders awaited U.S. job data, which could clarify the labor market’s strength and the Federal Reserve’s policy trajectory.

Market Performance:

• The BSE Sensex fell 237.60 points or 0.31%, trading at 77,382.61, with only 6 stocks advancing and 24 declining.
• Broader indices also dropped, with the BSE Midcap index down 1.37% and the Smallcap index falling 2.04%.
• The Nifty declined 107.20 points or 0.46% to 23,419.30, with 9 stocks advancing and 41 declining.

Sectoral & Stock Updates:
IT and TECK were the only gaining sectors, rising by 1.57% and 1.27%, respectively, while Utilities, Power, PSU, and Industrials suffered losses of over 1.8%. TCS, buoyed by strong Q3 results, led the gainers with a 3.92% rise, followed by Tech Mahindra, Infosys, and Nestle. On the losing side, IndusInd Bank, NTPC, and Adani Ports & SEZ witnessed significant declines.

Commerce Ministry’s Export Push:
The commerce ministry concluded a three-day meeting with Indian missions in 20 key countries, focusing on boosting exports in six sectors, including engineering goods and electronics. The targeted nations, such as the U.S., China, and the UK, constitute a substantial portion of India’s exports. However, export growth remains sluggish, with a 4.85% decline in November year-on-year, though services exports hit a record $34.31 billion in October.

Global Market Trends:
Asian indices mostly slipped, with the Nikkei 225, Hang Seng, and Shanghai Composite posting losses. However, the Jakarta Composite gained, bucking the trend. Investors worldwide remained cautious ahead of key U.S. labor data expected later in the day.