The stock markets opened lower on the first trading day of 2025, with both benchmark indices showing weakness in early trade amid sustained selling by foreign institutional investors and global market headwinds.

The BSE Sensex fell 111.73 points or 0.14 per cent to 78,027.28, while the broader NSE Nifty declined 56.55 points or 0.24 per cent to 23,588.25 in morning trade. The market opened with a gap-down, following negative trends seen in GIFT Nifty which indicated a loss of 75 points for the broader index.

“The New Year begins on a sombre note for the Indian equity market. The near-term trend appears weak with the macro construct dominated by weak GDP and earnings growth,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Among the top gainers on the NSE, Apollo Hospitals led the pack with a 1.30 per cent rise, followed by Asian Paints at 0.77 per cent, Larsen & Toubro gaining 0.67 per cent, Infosys up by 0.52 per cent, and Britannia Industries advancing 0.41 per cent. On the flip side, Bajaj Auto emerged as the biggest loser, dropping 1.92 per cent, while Adani Ports fell 1.80 per cent, Dr. Reddy’s Laboratories declined 1.34 per cent, ONGC shed 0.94 per cent, and Hindalco Industries was down by 0.91 per cent.

Sector-wise, the IT index witnessed the steepest decline, falling over 1.2 per cent, while defence and oil & gas indices showed strength, gaining more than 1 per cent each.

Foreign institutional investors (FIIs) continued their selling spree, offloading equities worth ₹4,645 crore on December 31, while domestic institutional investors (DIIs) provided some support by purchasing equities worth ₹3,546 crore on the same day.

“The headwinds from a strong dollar and high U.S. bond yields will impact the market through more FII selling, at least in the early days of 2025. Even though FII selling is matched by DII buying, in this tug of war, in the near-term, sentiments are on the side of FIIs since valuations continue to be elevated,” Vijayakumar added.

Technical analysts suggest that the market might face further pressure in the near term. “A fresh sell-off is possible below the level of 23,500/77700 and the market could retest 23450/77500 or 23250/77500-77000 levels,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

The volatility index, INDIAVIX, showed an uptick of 3.40 per cent and was trading at 14.4475, indicating increased market uncertainty.

For the banking sector, experts suggest that Bank Nifty is likely to trade within a range of 51,000 and 50,000. “If it falls below 50500, it may drop to 50000 or 49750. Above 51000, it could move towards 51200 and 51500,” Chouhan noted.

Market analysts advise investors to remain cautious in the current environment. “Given the current volatility, traders are advised to remain cautious, implement strict stop-loss measures, and avoid carrying long positions overnight to manage risks effectively,” said Hardik Matalia, Derivative Analyst at Choice Broking.

The immediate support for Nifty is seen at 23,500, followed by 23,300 and 23,200 levels, while resistance is placed at 23,800, followed by 23,900 and 24,000 levels. Analysts suggest that a sustained close above 24,000 would be necessary to reverse the current bearish trend.