Indian equity markets opened weak on Thursday, as mixed global cues and pre-Budget positioning weighed on investor sentiment. The Sensex was down 240 points at 82,103, and the Nifty was down 66 points at 25,275 in early trade.
However, this slight dip in the markets should not discourage investors as the Index of Industrial Production (IIP) has surged 7.8% in December 2025, its fastest pace in over two years. This growth has been driven by strong manufacturing (8.1% YoY growth) and mining output. Key value-added sectors such as automobiles, electronics, pharmaceuticals, basic metals, and transport equipment have shown robust expansion, indicating a positive outlook for India’s export potential under the recently signed India-EU Free Trade Agreement.
Technically, Nifty futures indicate a cautious start, with the Gift Nifty at 25,370, down ~75 points. However, F&O activity shows heavy call writing at near-the-money strikes, suggesting range-bound trading and limited upside. The Put-Call Ratio has also edged slightly lower to 0.82, reflecting cautious optimism. This indicates that the market may experience some fluctuations but overall, there is a positive sentiment among investors.
The broader Asia-Pacific markets are also marginally down in early trading, highlighting the impact of global uncertainties, including geopolitical tensions in the Middle East. However, this should not cause any major concerns for Indian markets as the domestic factors are strong enough to drive growth.
The recent surge in IIP growth is a clear indication of India’s strong industrial production and its ability to compete globally. This is a positive sign for the economy and investors. The growth in key sectors such as automobiles, electronics, pharmaceuticals, basic metals, and transport equipment not only boosts domestic production but also enhances India’s export potential.
The recently signed India-EU Free Trade Agreement will further strengthen India’s position in the global market. This agreement will open up new avenues for trade and investment, creating more opportunities for growth and development.
The cautious start in Nifty futures should not discourage investors as it is a common trend before any major event. With the Union Budget just around the corner, investors are positioning themselves accordingly. However, the heavy call writing at near-the-money strikes suggests that the market is expected to remain range-bound and the upside is limited. This provides a great opportunity for investors to enter the market and make strategic investments.
The Put-Call Ratio, which reflects the overall market sentiment, has also edged slightly lower to 0.82. This indicates that investors are cautiously optimistic and are expecting the market to perform well in the coming days. This positive sentiment is further supported by the strong industrial growth and the potential of the India-EU Free Trade Agreement.
In conclusion, the Indian equity markets may have opened weak on Thursday, but the recent surge in IIP growth and the potential of the India-EU Free Trade Agreement provide a strong foundation for growth. The cautious start in Nifty futures and the lower Put-Call Ratio should not discourage investors as they present a great opportunity to enter the market and make strategic investments. With the Union Budget around the corner, the Indian equity markets are expected to perform well in the coming days, making it an ideal time for investors to capitalize on the potential of the Indian economy.
