Finance markets in early 2026 show mixed signals with Indian indices like Sensex and Nifty fluctuating amid FII outflows, while US stocks edge toward records driven by tech and bank earnings. Global growth remains uneven, supported by easing rates but pressured by trade tensions and inflation risks.pulse.zerodha+4
Indian Market Volatility
Sensex dropped over 780 points early in January, falling below 25,900, as foreign portfolio investors withdrew Rs 7,608 crore in the first two trading days. Despite this, Nifty recently climbed above 25,700 boosted by strong Infosys Q3 earnings, with IT stocks leading gains amid cautious broader sentiment. Domestic SIP inflows from DIIs continue buffering FII selling, while forex reserves rose to $687.19 billion as of January 9.bmsmoney+3
US Stocks Near Records
Wall Street ended higher with banks like Morgan Stanley and Goldman Sachs surging on solid quarterly results, alongside chipmaker TSMC’s positive impact on semis. Nasdaq futures ticked up 0.6%, with S&P 500 and Dow close to all-time highs despite weekly declines; small-cap Russell 2000 hit fresh peaks. Investors remain heavily in stocks, with cash allocations at record lows of 3.3% per Bank of America survey.wsj+3
Global Economic Trends
India-Australia ECTA fully activates January 1, offering 100% duty-free access for textiles, leather, and engineering goods, potentially boosting exports. Global PMI signals slowing demand growth at 2.4% annualized GDP, with stagnant employment but hopes for rate cuts amid muted inflation. Emerging markets eye continued easing, though US tariffs and Fed caution could trigger outflows.deloitte+2
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