What Sectors Should Investors Watch as Global Sentiment Turns Positive?
Global Markets Set the Tone
Global risk sentiment improved sharply after the US administration stepped back from proposed tariff actions on the European Union. This triggered a strong rebound across US equities, pushed volatility lower, and lifted Asian markets in early trade. The easing of geopolitical and trade-related uncertainty has encouraged investors to rotate back into risk assets.
US Markets – Relief Rally in Play
| Index | Level | Change |
|---|---|---|
| Dow Jones | 49,076 | +1.21% |
| S&P 500 | 6,875 | +1.16% |
| Nasdaq | 23,224 | +1.18% |
The rally was broad-based, led by technology and industrials, while the VIX dropped nearly 16 percent, signalling reduced near-term fear.
Asian Markets Follow Through
Asian equities traded firmly, tracking the positive US close. Japan’s Nikkei outperformed, while GIFT Nifty pointed to a strong opening for Indian markets.
| Market | Level | Change |
|---|---|---|
| GIFT Nifty | 25,320 | +0.57% |
| Nikkei 225 | 53,505 | +1.38% |
| Hang Seng | 26,585 | +0.37% |
Key Sectors to Watch in Indian Markets
Metals – Precious Metals Cool Off
Gold and silver prices eased as global risk appetite improved and safe-haven demand moderated. This cooling phase may lead to near-term consolidation in metal-linked stocks, particularly those exposed to precious metals and base metals.
Focus names: Hindustan Zinc, Hindustan Copper
Telecom – Policy Tailwinds Emerge
The government has notified changes in broadband spectrum norms, a move expected to boost WiFi and data service penetration. This regulatory clarity is positive for large telecom operators with strong infrastructure and monetisation capability.
Focus names: Bharti Airtel, Reliance Industries
Export Plays – India–EU FTA in Focus
Market participants are watching developments around the India–EU Free Trade Agreement, which is expected to be announced ahead of January 26. Export-oriented sectors could benefit from improved market access and tariff rationalisation.
Focus segments: Auto ancillaries, textile exporters
Financials – Select NBFC Momentum
Positive technical momentum continues in select NBFCs, supported by improving asset quality trends and steady credit demand. Stock-specific action is likely, with investors favouring names showing relative strength.
Traders often align such global-to-local cues with index behaviour using Nifty Trading View.
Macro Cues to Monitor
US bond yields eased, with the 10-year ending lower at 4.249 percent, while the dollar index firmed modestly. These moves suggest financial conditions remain supportive for equities in the near term. Additionally, comments indicating confidence in a potential US–India trade deal have added to optimism around India’s external outlook.
Investor Takeaway
Derivative Pro & Nifty Expert Gulshan Khera, CFP®, believes the current risk-on phase is being driven by easing geopolitical stress and supportive global cues. While near-term momentum favours equities, sector rotation and stock selection will remain critical as markets digest policy developments, trade headlines, and upcoming data. Deeper market insights are available at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
