India’s benchmark indexes are set to open marginally higher on Tuesday, with futures indicating a slight pullback after stocks slipped to seven month-lows in the previous session.
Analysts expect corporate earnings, among other factors, to keep local equities under pressure. Globally, markets fell overnight as China’s release of its DeepSeek AI model hit technology stocks.
The GIFT Nifty futures were trading at 22,933, as of 8:10 a.m. IST, indicating that the blue-chip NSE Nifty 50 will open slightly above Monday’s close of 22,829.15.
Both Nifty and BSE Sensex closed at their lowest levels since early June 2024, giving away all the gains notched since the national election results.
The benchmarks have lost about 3.5% in January and are on course for a fourth straight monthly loss - the longest such streak in over 23 years.
Analysts cited moderation in corporate earnings, anxiousness over U.S. President Donald Trump’s trade policy and sustained foreign outflows from Indian stocks worth $7.75 billion as reasons for the monthly drop.
“Indian equities are expected to remain under pressure, ahead of Federal Reserve’s rate decision and commentary on Wednesday and the union budget announcements on Saturday,” said Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services.
Overnight, U.S.’ tech-heavy Nasdaq Composite dropped 3%, with AI leader Nvidia sinking 17%.
Earnings woes drag Indian shares to seven-month low
Chinese startup DeepSeek rolled out a free assistant it says uses cheaper chips and less data, raising concerns on U.S.’ dominance and spending in one of the markets’ hottest sectors.
Asian markets opened lower.
The AI model has posed threats to the business models of Nvidia, OpenAI and Google, which also has had a rub-off effect on Indian IT stocks, though there is no direct impact on Indian companies, said Khemka.
The Nifty IT index fell 3.36% on Monday, almost giving away all the gains of the previous week in one session.
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