Indian stocks likely to recover from worst week in three months
India's equity benchmarks are likely to open higher on Monday, after logging their worst week in more than three months in the previous session, with prospects of a U.S. rate cut supporting market sentiment.
Gains, however, could be capped by an elusive India-U.S. trade deal, heightened geopolitical risks, foreign fund outflows and a criminal probe into Federal Reserve chair Jerome Powell.
Gift Nifty futures were trading at 25,793 points, as of 7:54 a.m. IST, indicating that the Nifty 50 could open above its Friday close of 25,683.3.
Both Nifty 50 and Sensex lost about 2.5% each last week, closing lower in all of the five trading sessions, as renewed concerns over U.S. tariffs rattled investors.
"Volatility is expected to remain elevated, particularly during early trade, with any pullback rallies likely to be short-lived," Enrich Money CEO Ponmudi R said.
Asian markets rose early in the day, tracking a Wall Street rally from Friday after the U.S. economy created fewer jobs than expected in December, a report that did little to alter expectations of a Fed rate cut this year. [MKTS/GLOB]
Meanwhile, investors back home will focus on earnings and inflation data, scheduled for release later in the day, for further economic cues.
Foreign investors sold Indian shares worth 37.69 billion rupees ($417.63 million) on Friday, as per provisional data. They have offloaded $1.3 billion so far in January, following record outflows in 2025.
STOCKS TO WATCH
** Reliance Industries has paused plans to manufacture lithium-ion battery cells in India after failing to secure Chinese technology, Bloomberg News reports
** DMart operator Avenue Supermarts posts 13.2% growth in standalone revenue and 17.6% rise in profit for the third quarter
** Phoenix Mills says retail portfolio consumption rose 20% in December quarter, reflecting demand resilience even as select assets continue to undergo planned revamp
($1 = 90.2470 Indian rupees)
