In an interaction with ET Markets, Alok Singh, CIO at Bank of India Mutual Fund, explains why the current phase still offers a compelling entry point for BFSI investing, highlights the case for PSU banks, and outlines the growth drivers shaping the sector’s medium-term outlook.

As the Nifty slips below its 200-day moving average amid sustained FII outflows and a weakening rupee, market sentiment has turned sharply cautious ahead of the Budget. Rupak De, Senior Technical Analyst at LKP Securities, shares his January expiry strategy, key levels to track, and stock ideas in a volatile pre-Budget environment.

Indians residing overseas are actively investing in Indian mutual funds for long-term wealth. Pavan, a UK-based investor, exemplifies this trend. The article addresses eligibility, taxation, and compliance for non-resident investors. It highlights that OCI status is not mandatory for investment. Experts suggest reviewing portfolios annually to adapt to changing financial landscapes and currency differences for optimal retirement planning.

As the Union Budget approaches, markets prioritize policy continuity and fiscal credibility over headline announcements. Rajesh Palviya of Axis Securities highlights expectations for growth support via infrastructure spending, balanced with fiscal discipline. Investors seek clarity on fiscal deficit, ease of doing business, and selective sectoral opportunities, with a focus on execution strength and balance-sheet resilience.

Historical Nifty data reveals that investors often miss opportunities by focusing on Budget Day theatrics. The average Budget Day move is minimal, with significant returns typically observed in the week following the event, suggesting patience and waiting for policy clarity is a more profitable strategy.

Gold and silver futures soared to record highs on Thursday, with silver surpassing Rs 4 lakh and gold nearing Rs 1.8 lakh per 10 grams on the MCX. This surge is driven by escalating geopolitical tensions and the U.S. Federal Reserve's stable interest rates, boosting safe-haven demand for precious metals amid global uncertainty.

Foreign institutional investors have reduced exposure to Nifty 50 stocks, with holdings dropping to 25.5% by December 2025 amid global risk aversion. However, FIIs are selectively increasing positions in mid and smallcaps. Meanwhile, rising DII ownership continues to reshape market structure, offsetting promoter dilution and adding stability to Indian equities.

Retail investors bruised by small-cap losses are increasingly considering selling equities to chase soaring gold and silver ETFs. With precious metals sharply outperforming stocks, the temptation is strong. However, wealth managers warn that reallocating based on recent returns reflects recency bias and risks undermining disciplined asset allocation by turning portfolio hedges into concentrated bets near a potential cycle peak.

India has signed a landmark free trade agreement with the European Union, dubbed the “mother of all deals” by Prime Minister Narendra Modi, sparking a mixed market reaction. Textile stocks jumped up to 12% on export optimism, while automakers fell over 4% on fears of stiffer competition.

Mahindra & Mahindra shares fell over 4%, erasing Rs 18,000 crore in value, as investors worried about tariff cuts for European cars under the India-EU trade deal. But analysts say the calibrated quota, mass-market exclusions, and phased EV access limit the competitive threat to Mahindra’s core SUV business.