Why Are Sensex and Nifty Opening Lower as Investors Await the India-EU FTA?
Synopsis
The Indian equity markets started the week on a lower note due to persistent FII selling and mixed December quarter results. Investors are eagerly anticipating the India-EU Free Trade Agreement announcement, which could influence market sentiment positively.
Key Takeaways
Sensex fell by 436 points, while Nifty dropped by 110 points.
Investors are awaiting the announcement of the India-EU FTA .
All sectoral indices, except metal and PSU bank, are in the red.
Immediate support for Nifty is at 25,000.
FIIs sold equities worth Rs 4,113 crore .
Mumbai, Jan 27 (NationPress) The Indian equity markets commenced the week on a downward trend on Tuesday, influenced by ongoing FII selling and varied December quarter earnings reports.
By 9:25 am, the Sensex saw a decline of 436 points, or 0.54 percent, settling at 81,101, while the Nifty dropped 110 points, or 0.44 percent, to 24,938.
On this day, India and the European Union are poised to reveal the completion of talks regarding a Free Trade Agreement (FTA) during the India–EU Summit. This announcement is anticipated to uplift market morale, notably in the pharmaceutical, textiles, and chemicals sectors, according to analysts.
The main broad-cap indices mirrored the benchmarks, with the Nifty Midcap 100 declining by 0.53 percent and the Nifty Smallcap 100 easing by 0.57 percent.
All sectoral indices were in the negative zone, except for metal and PSU bank. The Nifty auto, realty, and media sectors experienced the steepest losses, falling 1.90 percent, 2.15 percent, and 1.28 percent, respectively.
Immediate support is identified around the 25,000 mark, while resistance is positioned between 25,250 and 25,300, as per market analysts.
In related news, the United States has indicated a potential easing of the 25 percent tariff on India for its purchases of Russian oil, although the tax remains active for now.
Additionally, China reported a 0.6 percent increase in industrial profits for CY25 compared to the previous year, halting a three-year trend of decline as manufacturing output increased despite sluggish domestic demand.
In the Asian markets, China's Shanghai index rose by 0.03 percent, while Shenzhen fell by 0.38 percent. Japan's Nikkei increased by 0.4 percent, and Hong Kong's Hang Seng Index gained 1.17 percent. South Korea's Kospi advanced by 1.81 percent.
The US markets concluded the last trading session positively, with Nasdaq rising by 0.43 percent. The S&P 500 increased by 0.5 percent, and the Dow added 0.64 percent.
Investors are keenly awaiting over 200 quarterly corporate results set to be released this week, along with the Union Budget scheduled for presentation on Sunday (February 1).
On January 20, foreign institutional investors (FIIs) sold net equities worth Rs 4,113 crore, whereas domestic institutional investors (DIIs) were net buyers of Rs 4,103 crore.
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Point of View
It's essential to approach the current market situation with an unbiased perspective. The fluctuations in the Indian equity markets stem from a combination of external factors and investor reactions. The anticipated FTA with the EU could serve as a pivotal moment for market recovery, but caution is warranted amidst the ongoing selling pressure.
NationPress
9 May 2026
Frequently Asked Questions
What caused the decline in Sensex and Nifty?
The decline is attributed to persistent selling by foreign institutional investors and mixed quarterly results from companies.
What is the significance of the India-EU FTA?
The FTA is expected to enhance trade relations and boost sectors like pharmaceuticals and textiles, potentially improving market sentiment.
What are the immediate support and resistance levels for Nifty?
Immediate support is at the 25,000 level, while resistance is identified between 25,250 and 25,300.
