Mkts await fundamental triggers; all eyes on Modi’s France, US visit

Sensex loses 549 points; 4 days of market slump wipes out `7.68L cr from investors’ wealth

* Cos’ earnings are under pressure, short-term outlook remains cautious 

* Stockbrokers for further clarity on budget proposals  

* Investors bullish on Modi’s meeting with Trump and interactions with business leaders  

* Delhi election results unlikely to trigger a mkt rally

* FIIs hold US$800 bn in Indian equities, continued selling poses risk

* Indian MFs have increased investments, reaching a 10-yr high, but their holdings are still lower than FPIs’

FPJ News Service mumbai

Markets remained cautious for the first trading session of the week on Monday as there were no signs of recovery in investor-sentiment. Equities on Monday lost further after President Trump announced a 25 per cent import tax on steel and aluminum imports into the US, raising concerns about global trade tensions. 

Tata Steel, and Power Grid Corporation were the top losers. The proposed Income Tax reforms and the RBI’s liquidity measures did not boost the undercurrent of the market. 

Indices, the BSE Sensex and NSE Nifty50, ended the week’s first trading session lower, dragged down by selling across the counters. The 30-share Sensex lost as much as 548.39 points and closed at 77,311.80 before testing 77,849.58 and 77,106.89 levels on Monday. The NSE Nifty ended lower by 178.35 points at 23,381.60. The Nifty-50 recorded a day's high of 23,568.60, while the day's low was 23,316.30. 

Technically, fundamental triggers have been missing since February 1, 2025. Markets are waiting for further clarity on the much-publicised budget proposals, and the outcome of Prime Minister Narendra Modi’s bilateral visits to France and US. Modi is scheduled to travel to the US at the invitation of President Trump.

Market men are upbeat about Modi’s bilateral meeting with Trump and interactions with business leaders and members of the Indian community in US. In Paris, Modi will be co-chairing the AI Action Summit along with French President Emmanuel Macron on Tuesday. Investors also anticipate huge investments and collaborations among Indian and world AI majors. 

“The Delhi election results, particularly the emphatic nature of the BJP win, though positive from the market perspective, are unlikely to trigger a sustained rally in the market. With the dollar index above 108 and the 10-year US bond yield above 4.4%, FIIs will continue to sell the rally, restricting any potential upside. 

“It is important to understand that valuations in India continue to be on the higher side, particularly in the broader market. The market needs fundamental triggers like indications on GDP growth and earnings rebound. Until then the market is likely to move only in a range. Investors should stick to fairly valued high quality large-caps,” Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services opined.

"The US tariff threats continued to impact the market sentiment. Domestic yield is inching higher as investors stay cautious on riskier assets and navigate their investments to safe haven assets like gold. On the earnings front, the companies are facing downgrades in estimates due to a weak demand environment, margin pressure, and a cautious near-term outlook," said Vinod Nair, Head of Research at Geojit.