The Indian benchmark indices traded flat with a mild negative bias on Monday over losses in IT stocks and the latest US-Venezuela tensions. Even as Indian companies showed signs of improving quarterly earnings, optimism was blunted by caution over the implications of US military action in Venezuela.
As of 9.30 am, Sensex eased 62 points, or 0.07 per cent to 85,699 and Nifty gained 9 points, or 0.03 per cent to 26,319. Main broad-cap indices performed almost in line with benchmark indices, with the Nifty Midcap 100 unchanged, while the Nifty Smallcap 100 gained 0.36 per cent.
ONGC and SBI were among major gainers on the Nifty. Among sectoral gainers, Nifty IT was the major loser, down 1.41 per cent. In Nifty media, metal and PSU sectors were the major gainers up 0.84 per cent, up 0.70 per cent and 0.79 per cent, respectively.
Immediate support lies at 26,150–26,200 zone, and resistance placed at 26,450–26,500 zone, market watchers said. Analysts said that major geopolitical events at the start of 2026 could have serious consequences and could affect the market.
The US action in Venezuela could destabilise global geopolitics. The Russia-Ukraine conflict is likely to continue, Iranian protests may worsen and the Iranian regime may react in light of US President Donald Trump's threat of intervention, and China may use the opportunity to annex Taiwan, they said.
A positive for India from the Venezuelan crisis would be medium to long-term bearish impact for crude, they said. The market may remain resilient in the short term due to its all-time high and bullish momentum. The Bank Nifty is strong due to strong credit growth, they said, adding that Q3 banking and financial results would be impressive.
In Asian markets, China's Shanghai index added 1.07 per cent, and Shenzhen gained 1.87 per cent, Japan's Nikkei added 2.557 per cent, while Hong Kong's Hang Seng Index eased 0.12 per cent. South Korea's Kospi advanced 2.87 per cent.
The US markets were mostly in the green zone on the last trading day even as Nasdaq lost 0.03 per cent. The S&P 500 gained 0.19 per cent, and the Dow moved up 0.66 per cent. On January 2, foreign institutional investors (FIIs) bought equities worth Rs 290 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 677 crore.