Indian stock markets opened higher on Monday, taking cues from global markets as investors await Donald Trump’s swearing-in as the 47th U.S. President. However, early gains were tempered by market volatility amid stock-specific movements, with the third-quarter earnings season in full swing. Investors are closely monitoring December-quarter results and management commentary.

The International Monetary Fund (IMF) has retained India’s GDP growth forecast at 6.5% for FY26 and FY27, despite concerns over a slowdown in industrial activity. However, caution prevailed as reports showed net foreign direct investment (FDI) in India fell sharply to $0.5 billion between April and November 2024, compared to $8.5 billion in the same period last year, due to increased repatriation and overseas investments by Indian companies.

On the global front, Asian markets traded mostly higher, following positive Wall Street cues fueled by optimism over interest rate trends. However, global investors remain cautious ahead of Donald Trump’s inauguration amid uncertainty over his policies.

Sectoral and Stock Performance
At home, the Sensex was trading at 76,683.00, up by 63.67 points or 0.08%, while the Nifty stood at 23,215.85, up by 12.65 points or 0.05%. The broader indices underperformed, with the BSE Midcap index falling 0.55% and the Smallcap index slipping 0.01%.

Among sectors, Bankex and Telecom gained 1.20% each, followed by PSU, Power, and Utilities. On the losing side, Auto dropped 1.10%, while IT, Consumer Discretionary, Healthcare, and TECK declined moderately.

Kotak Mahindra Bank surged 9.14% after reporting a 10% YoY rise in Q3 net profit to RS 3,305 crore. Other gainers included NTPC, SBI, Power Grid, and Reliance Industries. On the flip side, IndusInd Bank, Tata Motors, and Mahindra & Mahindra were among the top laggards.

Global Economic Insights
The IMF’s latest World Economic Outlook report highlighted India’s slowing GDP growth, which fell to 5.4% in Q2 FY25 from 6.7% in Q2 FY24. Despite this, India remains the fastest-growing major economy globally. The IMF also forecasted global GDP growth at 3.3% for 2025 and 2026, below the historical average of 3.7%.

Global Market Updates
In Asia, the Nikkei 225 rose by 1.19% to 38,910.37, while the Hang Seng surged 2.28% to 20,041.09. Other indices, including Taiwan Weighted, Jakarta Composite, and Shanghai Composite, posted modest gains. Meanwhile, the Straits Times index edged down 0.07%.

Investors continue to navigate a mix of earnings reports, policy announcements, and global economic trends, with market sentiment remaining cautiously optimistic.