Market Insight, 10 January 2025

Friday, 10th Jan 2025

Time : 8:30 AM IST

Insights :

Market Update: Key Highlights for January 8, 2025

1. Nifty Performance:
   Nifty fell by 162 points, closing at 23,526. It was a broad-based market decline with most sectors in the red.
2. Sectoral Highlights:

• Nifty FMCG was the only sector to end in the green, gaining 0.93%.
• Broader indices like Nifty Smallcap and Midcap fell by 1.3% and 0.9%, respectively.
• India VIX rose by 1.3%, settling at 14.65, indicating rising market volatility.

1. FII & DII Activity:

• FIIs net sold ₹7,170 crores, continuing their selling streak due to factors like the rising Dollar Index and US bond yields.
• DIIs net bought ₹7,639 crores, supported by strong retail SIP inflows.

1. Global Cues Influencing FII Outflows:

• The Dollar Index crossed the 109 mark, while US bond yields reached all-time highs at 4.7%.
• The USD/INR exchange rate climbed to ₹85.86, adding pressure on foreign inflows.

1. TCS Q3 Results:

• TCS reported in-line Q3 results—neither disappointing nor extraordinary.
• The company announced a special dividend of ₹66/share and an interim dividend of ₹10/share.

1. US Market Holiday:

• US equity and bond markets were closed on Monday in honor of former President Jimmy Carter.

1. FII Index Futures Positions:

• FII short positions remain high, with 84% of index futures in shorts. Despite significant selling (~$1 billion), Nifty’s downside was cushioned by strong month-on-month SIP inflows from retail investors.

1. Global and Local Cues:

• Asian markets and US futures are trading lower ahead of the US jobs data release.
• GIFT Nifty indicates a 70-point lower opening for Indian markets.

1. Nifty Technical Levels:

• Support: 23,450
• Resistance: 23,650