India’s benchmark indexes were muted on Wednesday, the first session of 2025, with analysts expecting markets to drift sideways until the quarterly earnings season starts next week.
The Nifty 50 dipped by 0.11% at 23,617.75 points as of 9:35 a.m. IST, while the BSE Sensex was off 0.09% at 78,057.81.
Ten of the 13 major sectors logged losses, with the autos index down 0.4%.
Bajaj Auto shed 2%, the most on the autos and Nifty 50 indexes, after the two-wheeler maker posted a drop in vehicle sales in December.
The broader, more domestically focussed smallcaps and midcaps were flat.
Other Asian markets were also muted, with the MSCI Asia ex-Japan index down 0.1% as elevated U.S. Treasury yields continue to weigh on emerging markets.
“There is a lack of momentum in domestic equities due to ongoing concerns over a strengthening dollar index and elevated U.S. Treasury yields,” said Vinod Nair, head of research at Geojit Financial Services.
Banks lead Indian shares lower as high US Treasury yields weigh
Corporate earnings starting from next week and the union budget in early February will decide the trajectory of Indian markets in the near term, according to three analysts.
The Nifty 50 and Sensex blazed to record highs in the first few months of 2024 but slowing corporate earnings and an exodus of foreign funds curtailed their annual gains to about 8.5%, the least among major global peers, and even pushed stocks into correction territory.
Among individual stocks, tractor maker Escorts Kubota lost 2% on the day after posting a drop in December sales.
Meanwhile, SJVN rose about 3% and Kalpataru Projects International gained 2.4% after they each secured some contracts.
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