New Delhi [India], January 16 (ANI): The domestic equity benchmarks opened marginally higher on Thursday but are expected to remain cautious and range-bound through the session, weighed down by persistent foreign portfolio investor (FPI) selling, mixed global cues and limited expectations from the upcoming Union Budget.

The Nifty 50 opened at 25,696.05, gaining 30.45 points or 0.12 per cent, while the BSE Sensex began the day at 83,670.79, up 288.08 points or 0.35 per cent.

Ajay Bagga, Market expert told ANI that Indian markets are currently in a 'wait and watch' mode. He said 'There are not very high expectations from the Union Budget 2026 so far has been like 2025, with IPOs seeing a 'lottery investment for listing gains' mentality while FPI selling in the secondary markets stays elevated. Indian markets will benefit from a sentiment boost following the top Indian bureaucrat in the Commerce Ministry holding out hopes for an India EU trade deal to be signed by 26th January and saying that an India US trade deal is progressing well. The wait is for a positive news on the trade deal front. An EU deal will be a morale booster as the EU represents a huge potential market for Indian goods'.

In the broader market, indices opened in green. The Nifty 100 rose 0.12 per cent, the Nifty Midcap 100 gained 0.13 per cent and the Nifty Smallcap 100 was up 0.10 per cent in early trade.

Sectorally, trends were mixed. On the NSE, Nifty FMCG gained 0.48 per cent, Nifty IT surged 1.61 per cent, Nifty PSU Bank rose 0.18 per cent and Nifty Metal added 0.30 per cent. On the downside, Nifty Auto slipped 0.3 per cent, Nifty Pharma fell 0.22 per cent and Nifty Media also declined.

Several major companies are set to announce their Q3 results today, including Reliance Industries, Wipro, Tech Mahindra, Polycab India, L&T Finance, Federal Bank, JSW Infrastructure, Poonawalla Fincorp, Central Bank of India, JB Chemicals and Pharmaceuticals and Tata Technologies.

Ponmudi R, CEO of Enrich Money, said 'Indian equity markets are set to begin the session on a cautious and range-bound note as multiple global headwinds continue to cap risk appetite. Ongoing geopolitical developments and tariff-related uncertainties are clouding near-term visibility. Sentiment also remains restrained due to persistent FII outflows and mixed reactions to Q3 earnings, which have made participants more selective and defensive in their approach'.

On the fund flow front for January 14, FIIs sold equities worth Rs 4,781.2 crore, while DIIs were net buyers to the tune of Rs 5,217.3 crore.

Globally, US markets received support from easing Iran-related tensions, strong results from TSMC boosting AI and semiconductor stocks, and gains in financials led by Goldman Sachs and Morgan Stanley. Asian markets, however, showed a mixed trend in early trade, adding to the cautious tone for Indian equities. (ANI)