Stock market today: Key things to know before the opening bell on January 27

Indian markets are expected to open in deep red as the GIFT NIFTY futures indicate a 200-point drop on Monday morning. The sharp fall in the index futures was largely driven by a pessimistic global market environment and key events ahead this week. The NASDAQ futures traded nearly 400 points lower on Monday morning after reports on Deepseek AI disrupting the space have threatened the dominance of Open AI and, thereby, Nvidia.

In addition, Donald Trump imposed tariffs on Columbia after it denied entry to military aircraft that carried deported immigrants. In retaliation, the Columbia also announced tariffs on US imports.

US Markets

The Dow Jones, NASDAQ, and S&P500 closed 0.30% to 0.5% down on Friday ahead of crucial events this week. The Federal Reserve will meet for its bimonthly policy meeting this week. Market participants will also look out for earnings from the magnificent 7 tech stocks this week. The NASDAQ futures were in deep red on Monday morning after reports suggested Deepseek AI is about to disrupt the space currently dominated by Open AI.

Asian markets

The Asian market traded mixed across the board after the Japanese indices traded in the red and Chinese and Hong Kong indices in the green. The latest manufacturing data from China suggests continued pain in the world’s second-largest economy as the manufacturing PMI for January came in lower at 49.1 as compared to 50.1 in December 2024. A PMI reading below 50 is considered a contraction in the activity in the respective category.

Crude Oil

Crude oil prices dropped 3.6% last week and continue to fall this week. WTI Crude oil prices traded below $74. The demand outlook for crude oil also weakened as Trump imposed tariffs on Columbia to restrict the entry of deported citizens from the US. The WTI crude oil price traded 0.32% lower at $73.8 per barrel, and Brent crude oil prices traded 0.7% higher at $78.4 per barrel.

FII and DII data

The FIIs' short position in the index futures has further reduced to 3.09 lac contracts, compared to 3.28 lac on Thursday. On the other hand, they sold ₹2,758 crore worth of Indian equities on Friday. Monthly, the FIIs have sold nearly ₹70,000 crore worth of equities in January alone.