Sensex, Nifty post mild losses over latest geo-political tensions

Indian benchmark indices opened lower on Monday, pressured by declines in IT stocks and escalating U.S.-Venezuela tensions.

Though corporate earnings showed signs of improvement, optimism was offset by caution over potential repercussions from U.S. military activity in Venezuela.

By 9:30 AM, the Sensex dipped 62 points (0.07%) to 85,699, while the Nifty edged up 9 points (0.03%) to 26,319.

Broader market indices mirrored benchmarks, with the Nifty Midcap 100 flat and the Nifty Smallcap 100 rising 0.36%.

ONGC and SBI emerged as top Nifty gainers. Sectorally, Nifty IT led losses, down 1.41%. Media, metal, and PSU sectors outperformed, rising 0.84%, 0.70%, and 0.79% respectively.

Technical analysts identified immediate support at 26,150–26,200 and resistance at 26,450–26,500 levels.

Experts cautioned that geopolitical flare-ups in early 2026—including Venezuela tensions, the Russia-Ukraine conflict, Iranian unrest, and China-Taiwan relations—could disrupt markets.

They noted that Venezuela-related disruptions might exert medium-term downward pressure on crude oil prices, benefiting India.

Domestic markets could remain buoyant in the near term, supported by record highs and banking resilience amid robust credit growth. Q3 banking results are anticipated to be strong.

In Asia, China’s Shanghai Composite rose 1.07% and Shenzhen surged 1.87%, while Japan’s Nikkei jumped 2.56%. South Korea’s Kospi gained 2.87%, though Hong Kong’s Hang Seng slipped 0.12%.

U.S. markets mostly closed higher on the previous day, with the Dow up 0.66% and S&P 500 gaining 0.19%, while Nasdaq dipped marginally by 0.03%.

On January 2, foreign institutional investors (FIIs) net purchased shares worth ₹290 crore, while domestic institutional investors (DIIs) bought equities worth ₹677 crore.

(With inputs from IANS)