Following Donald Trump's inauguration as the 47th President of the United States on January 20, 2025, the Indian stock market is poised for a positive shift. Analysts predict that the Sensex and Nifty indices will open higher on January 21, 2025, buoyed by a rally in Asian markets attributed to improved U.S.-China relations post-inauguration [82329e83].
On January 19, 2025, the BSE Sensex had declined by 759.58 points (0.98%) to close at 76,619.33, while the NSE Nifty shed 228.3 points (0.97%) to finish at 23,203.20. This drop was influenced by selling pressure from foreign institutional investors (FIIs), who offloaded equities worth ₹25,218.60 crore, while domestic institutional investors (DIIs) bought equities worth ₹25,151.27 crore, indicating a slight offset in market sentiment [d7d767f1].
However, the mood has shifted with Nifty futures rising by 144 points to 23,381, reflecting optimism in the market [82329e83]. Notably, Japan's Nikkei 225 saw an increase of 1.16%, and Hong Kong's Hang Seng rose by 1.7%, contributing to a positive outlook for Indian markets [82329e83].
In specific stock movements, Kotak Mahindra Bank shares rallied by 10% following strong Q3 results, while Kalyan Jewellers gained 9% after experiencing a significant 34% drop earlier in January [82329e83]. Additionally, the debut of the Laxmi Dental IPO at ₹542, which is a 26.64% premium over its issue price, has attracted investor interest [82329e83].
The Indian rupee closed at 86.60 against the US dollar, reflecting ongoing pressures in the currency market [d7d767f1]. Amidst this backdrop, Vodafone Idea saw a notable rise of 10% on reports of an AGR waiver, providing some relief in an otherwise bearish market [d7d767f1].
As the earnings season continues, analysts expect sharp stock-specific movements. Stocks such as APL Apollo, Biocon, and GMR Airports are currently viewed favorably, while BPCL and Infosys are seen as weaker performers [d7d767f1]. The implied volatility for Nifty’s Call options settled at 15.16%, with the India VIX closing at 15.47%, indicating heightened market uncertainty [d7d767f1].
Investors are advised to remain cautious as the market reacts to both domestic earnings reports and the broader implications of Trump's presidency on global economic conditions. The upcoming Union Budget will also be a critical factor influencing market dynamics in the near term [d7d767f1].