Indian equity benchmarks traded lower in early trade, with Sensex down 347 points (0.42 percent) at 81,997 and Nifty shedding 81 points (0.32 percent) at 25,260, weighed by IT sector weakness (down 1.29 percent). The rupee breached 92 per dollar. Midcap and smallcap indices rose, while metal, PSU bank, and oil & gas sectors gained. Analysts attribute the recent rally to pre-Budget short covering.

Sensex, Nifty Open Lower, IT Stocks Drag Amid Rupee Weakness Past 92, Mixed Global Cues

Mumbai Equity Markets Trade Lower Amid Global Cues and IT Weakness

The Indian equity markets opened lower on Thursday, influenced by mixed global cues and a decline in IT stocks. As of 9:30 am, the Sensex eased by 347 points, or 0.42 per cent, reaching 81,997, while the Nifty lost 81 points, or 0.32 per cent at 25,260.

The rupee surpassed its previous all-time low of 91.9650 last week, falling past the key 92 a dollar barrier in early trade.

Main Broad-Cap Indices Diverge from Benchmark Indices

The Nifty Midcap 100 gained 0.21 per cent.
The Nifty Smallcap 100 surged 0.47 per cent.
All sectoral indices were trading in the red except for metal, PSU bank, realty, and oil and gas.
Nifty metal and PSU bank were notable gainers, up 1.76 per cent and 0.70 per cent, respectively.
Nifty oil and gas gained 0.78 per cent.
Nifty IT was the major loser, down 1.29 per cent.

Market Watchers Expect Support and Resistance Zones

Analysts stated that immediate support lies at the 25,200 zone, while resistance is anchored at the 25,400-25,500 zone.

Analysts Attribute Nifty's Surge to Temporary Response Ahead of Union Budget

Market watchers dubbed Nifty's surge of 300 points during the last two trading days as "a temporary response in anticipation of the Union Budget." They added that the bears wouldn't risk going into the Budget with huge open short positions, leading to some shorts being covered, which contributed to the rally.

Additionally, analysts stated that FIIs' short to medium-term strategy of 'sell India' and shift capital to other markets will remain unchanged unless there are notable announcements in the Budget, nudging them to return to India.

Global Markets Trade Mixed Amid US Federal Reserve Decision

Asia-Pacific markets mostly traded lower in the morning session.
China's Shanghai index eased 0.1 per cent.
Shenzhen added 0.01 per cent.
Japan's Nikkei traded flat.
Hong Kong's Hang Seng Index gained 0.34 per cent.
South Korea's Kospi added 0.94 per cent.

US Markets End Largely in the Green Overnight

The US markets ended largely in the green overnight.
Nasdaq advanced 0.17 per cent.
The S&P 500 eased 0.01 per cent.
The Dow gained 0.02 per cent.

FIIs and DIIs Net Buying in Indian Equities

On January 27, foreign institutional investors (FIIs) became net buyers for the first time in 2026, net buying equities worth Rs 480 crore. Domestic institutional investors (DIIs) were net buyers of equities worth Rs 3,360 crore.