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Market Commentary - Pre-Session

GIFT Nifty indicates flat opening for key indices; Trump targets Iran-linked trade with 25% tariffs

13-Jan-26    08:30

GIFT Nifty:

GIFT Nifty January 2026 futures were down 38.00 points, indicating a muted opening for the Nifty 50 today.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 3,638.40 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 5,839.32 crore in the Indian equity market on 12 January 2026, provisional data showed.

The FIIs had sold shares worth Rs 15,425.22 so far in January. This follows their cash sales of Rs 34,349.62 crore in December and Rs 17,500.31 crore in November.

Global Markets:

Asia market traded higher on Tuesday as traders shrugged off geopolitical flashpoints in Iran and Venezuela, as well as a criminal investigation into the U.S. Federal Reserve Chair Jerome Powell.

Japan's benchmark Nikkei 225 jumped 3.4% to lead gains in the region. Japan's ruling Liberal Democratic Party is expected to dissolve the country's Lower House later this month and opt for a snap election likely in February, according to media reports.

Traders will also be keeping a close eye on oil prices amid ongoing protests in Iran. President Donald Trump is reportedly weighing options for intervention in Iran, according to multiple media reports.

Trump in a social media post on Monday stateside reportedly said any country doing business with Iran will face a 25% tariff 'on any and all business being done with the United States of America.' That new tariff on imports from Iran's trading partners is 'effective immediately.'

Overnight in the U.S., stocks rallied off their session lows, with the S&P 500 and Dow Jones Industrial Average hitting new all-time highs.

The S&P 500 rose 0.16% to end at 6,977.27, while the Dow Jones Industrial Average ticked up 86.13 points, or 0.17%, and settled at 49,590.20. Both indexes touched fresh all-time intraday highs and closed at records. The Nasdaq Composite was up 0.26% and closed at 23,733.90.

Domestic Market:

Domestic equity benchmarks snapped a five-day losing streak on Monday after a sharp intraday rebound. The move was driven by positive global cues, value buying and reassuring comments on India-US trade ties from newly appointed US Ambassador to India Sergio Gor.

The Sensex, which was down over 700 points in early trade, recovered more than 1,000 points from the day's low by the close. The Nifty also climbed back above the 25,790 level as sentiment improved, with metals, PSU banks and energy stocks leading the recovery.

The market reacted after Gor said India and the US remain actively engaged on trade and that talks are continuing despite differences. He also conveyed greetings from President Donald Trump to Prime Minister Narendra Modi. Sentiment received an added boost after Gor announced that India would be invited next month to join PaxSilica.

The recovery was broad-based. Bank Nifty rebounded sharply, while midcap and smallcap indices erased a large part of their early losses. Export-oriented stocks also gained as fears of an immediate tariff escalation eased after weeks of sustained selling and foreign fund outflows.

The S&P BSE Sensex advanced 301.93 points or 0.36% to 83,878.17. The Nifty 50 index gained 106.95 points or 0.42% to 25,790.25. In the past five consecutive trading sessions, the Sensex declined 2.54% while the Nifty fell 2.45%.

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