Strong Global Market Signals Could Support Indian Equity Rally

WenAirdrop · 2026-01-12T18:27:14+00:00

Robust international market performance may support a steady opening for Indian shares amid Q3 earnings updates from major banks. Global equity gains reflect optimism despite mixed economic signals, while Indian indices faced pressure and geopolitical concerns weigh on outlook.

WenAirdrop

2026-01-12 18:27:14

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Robust international market performance is sending positive cues for Indian shares, potentially setting the stage for a steady opening on Tuesday. Investors are closely monitoring global market momentum while digesting Q3 earnings updates from major private sector lenders including Axis Bank and IndusInd Bank.

The backdrop from overseas markets presents a mixed but generally supportive environment. U.S. equities surged overnight, with the Dow jumping 1.2 percent to new record levels, while the S&P 500 climbed 0.6 percent and the Nasdaq Composite advanced 0.7 percent. The rally reflected investor optimism following geopolitical developments in Venezuela and positive energy sector commentary from the White House. However, manufacturing data revealing a 10th consecutive month of contraction barely dented the bullish sentiment.

European bourses extended gains as well, with the Stoxx 600 rallying 0.9 percent. Germany’s DAX led regional cues with a 1.3 percent surge, while France’s CAC 40 edged up 0.2 percent and the U.K.'s FTSE 100 added 0.5 percent. Asian markets continued their record-breaking momentum, with China, Hong Kong and Japan delivering strong regional gains.

Back home, Indian benchmark indices closed under pressure on Monday despite these supportive global cues. The Sensex slipped 0.4 percent while the Nifty declined 0.3 percent, weighed down by caution over U.S. military actions and fresh tariff uncertainty. The rupee weakened marginally to 90.2775 per dollar, marking its fourth consecutive daily decline.

Capital flows painted a divergent picture. Foreign investors executed net sales of Rs 36 crore while domestic institutional investors demonstrated conviction by purchasing Rs 1,764 crore worth of shares. Gold held firm above $4,450 per ounce while crude oil retreated slightly after Monday’s $1 per barrel gain.

The immediate outlook remains clouded by geopolitical tensions and trade negotiations, though the imminent start of the critical Q3 earnings season provides a potential catalyst for volatility in either direction.

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