Last Updated on January 16, 2026 11:25 pm by INDIAN AWAAZ
IT Rally Offsets Global Trade Concerns as Markets Consolidate
AMN / BIZ DESK
Domestic equity markets ended Friday’s session on a mildly positive note, closing the week almost flat as selective buying in information technology and state-owned banking stocks offset concerns over global trade uncertainty and continued foreign fund outflows.
The BSE Sensex rose 187.64 points, or 0.23 per cent, to settle at 83,570.35, while the NSE Nifty 50 gained 28.75 points, or 0.11 per cent, to close at 25,694.35. On a weekly basis, the benchmarks showed limited movement, with the Nifty edging up 0.04 per cent, while the Sensex slipped marginally by 0.01 per cent, reflecting a cautious undertone among investors.
Market sentiment remained mixed throughout the session. Optimism around the ongoing earnings season—particularly from large IT firms and select public sector banks—provided support to the indices. However, uncertainty surrounding a potential US trade deal, coupled with sustained selling by foreign institutional investors (FIIs), restricted any sharp upside.
The broader market outperformed the frontline indices. The Nifty Midcap index advanced around 0.2 per cent, while the Smallcap index gained nearly 0.5 per cent, indicating continued interest in select mid- and small-sized stocks despite overall market caution.
A major highlight of the day was the strong performance of the IT sector. IT stocks emerged as the top gainers, with the sectoral index jumping about 3.3 per cent on Friday and ending the week with a solid gain of nearly 2.8 per cent. Investor confidence was boosted by better-than-expected quarterly earnings from IT heavyweights such as Infosys, HCLTech and Tata Consultancy Services (TCS), which signalled resilient demand and stable margins despite global macroeconomic challenges.
On the currency front, the Indian rupee witnessed sharp weakness, sliding around 50 paise to settle near its all-time low at 90.84 against the US dollar. The depreciation was attributed to dollar strength, concerns over capital outflows, and global risk aversion, adding another layer of caution for equity investors.
Sector-wise Performance Snapshot
- Information Technology (IT):
Best-performing sector of the day; surged ~3.3%. Supported by strong earnings from Infosys, HCLTech and TCS. Weekly gain of ~2.8%. - Banking & PSU Banks:
State-owned banks provided moderate support to the market amid earnings optimism, though gains were selective. - Midcap Stocks:
Gained ~0.2%, reflecting selective buying interest and relatively stable sentiment in quality names. - Smallcap Stocks:
Outperformed broader indices with a rise of ~0.5%, indicating risk appetite in pockets of the market. - Export-oriented Sectors:
Mixed performance; weaker rupee offered some support, but global uncertainty limited gains. - Other Cyclicals & Defensives:
Traded in a narrow range as investors remained cautious ahead of further earnings announcements and global cues.
Overall, the market closed the week in a consolidation phase, balancing domestic earnings optimism against global uncertainties and currency pressures. Investors are expected to remain stock-specific in the near term, with upcoming corporate results, FII activity and developments on the global trade front likely to guide market direction.
https://biznama.com/it-rally-offsets-global-trade-concerns-as-markets-consolidate