On January 13, 2025, Indian equity markets opened under significant pressure, with the Nifty index at 23,320, indicating a gap-down of 200 points from the previous close of 23,500. The Nifty50 plunged 2.39% last week, closing at 23,431.50, while the BSE Sensex fell 2.33% to 77,378. The Bank Nifty dropped 4.42% to 48,734, breaking below the critical 50,000 level.
Foreign Institutional Investors (FIIs) offloaded ₹16,854 crore in equities last week, contributing to a total outflow of ₹22,259 crore in January. This trend is driven by rising US bond yields, with the 10-year yield surpassing 4.6%, and a strengthening dollar index above 109. Domestic Institutional Investors (DIIs) bought equities worth ₹21,682 crore, providing some support to the market.
Global markets are also facing challenges, with US stocks declining due to concerns over inflation and potential interest rate hikes. The Indian market's bearish momentum is further reflected by all major indices trading below their 200-day EMA.
Looking ahead, investors are attentive to upcoming CPI data releases from India, the UK, and the US, as well as earnings reports from major companies like Reliance Industries and Infosys.