Indian equities in Monday's session tracking mixed Asian markets opened lower amid risk-off sentiment. At the open, Sensex was down 0.33 per cent or 254.71 points at 77,605.48, while the Nifty index declined 0.16 per cent or 37.5 at 23,522.45. Meanwhile, broader markets underperformed headline indices.

Sectorally, amid broad-based weakness, only FMCG and auto indices traded with mild gains, with metal, pharma and realty- among the worst hit sectors.

From the Nifty pack, top gainers included stocks like Britannia, SBI, Bharti Airtel, HUL and Hero MotoCorp, while top laggards included stocks like Cipla, Tata Steel, JSW Steel, Dr. Reddy's Laboratories and Hindalco.

The focus this week will also be on CPI inflation data from India and the US, both set to release on February 12th.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "The Delhi election results, particularly the emphatic nature of the BJP win, though positive from the market perspective, are unlikely to trigger a sustained rally in the market. With the dollar index above 108 and the 10-year US bond yield above 4.4%, FIIs will continue to sell the rally, restricting any potential upside."

It is important to understand that valuations in India continue to be on the higher side, particularly in the broader market, he added.

Anand James, Chief Market Strategist, Geojit Financial Services said, "Though Friday ended with Nifty in red completing three consecutive days of descent, favoured view sees it as an acknowledgement of the importance of the 50 SMA from which the turn lower started. But then, bargain buying unfolded quickly in the dying hours of Friday, on approach of the 38.2 fibo of the 27 Jan-05 Feb ascent, setting up conditions for a large move in the coming week."

This setup thus encourages us to look at the 24380-426 as the potential upside target, with 24226, the 2nd Jan high, offering intermediate resistance. Alternatively, inability to clear 23800 or inability to float above 24020 after the initial burst could deflate upside momentum, added James.
 

Asian markets, tracking US stock futures, traded lower in Monday's session ahead of key economic data. The key MSCI ex Japan index traded with a cut of 0.28 per cent.  The US President Donald Trump over the weekend said that he plans to levy reciprocal tariffs on many nations next week.