Last Updated on January 19, 2026 9:35 pm by INDIAN AWAAZ
Analysts believe near-term market direction will remain volatile, with investors closely watching global developments, trade-related uncertainties, FPI flows, and upcoming corporate earnings. Until clarity emerges on geopolitical and trade issues, market participants are expected to remain selective and cautious.
AMN / BIZ DESK
Domestic equity benchmarks started the new trading week on a subdued footing on Monday, weighed down by weak global cues, cautious investor sentiment, and stock-specific selling pressure. Both frontline indices—the BSE Sensex and the NSE Nifty50—extended losses from last week, ending the session down nearly 0.4 per cent each.
At the close, the BSE Sensex settled at 83,246.18, down 324.17 points or 0.39 per cent, while the NSE Nifty50 ended at 25,585.5, lower by 108.85 points or 0.42 per cent.
Global and Macro Cues
Market sentiment remained fragile amid adverse global developments. Risk appetite was dented after US President Donald Trump threatened to impose taxes on several European countries following their opposition to his bid to acquire Greenland. Closer home, investors continued to track uncertainty around a potential India–US trade deal, particularly after the United States imposed a steep 50 per cent tariff on Indian goods, adding to concerns over exports and corporate earnings.
Foreign portfolio investor (FPI) activity also remained a key overhang. Data indicated that FPIs were net sellers in Indian equities throughout 2025, leading to subdued participation and heightened volatility in recent months.
Stock-Specific Pressure
Monday’s decline was driven largely by heavyweight stocks, with Reliance Industries (RIL), ICICI Bank, and HDFC Bank emerging as the biggest drags on the indices following the announcement of their third-quarter results. The muted reaction to earnings reflected cautious expectations and selective profit-booking in large-cap stocks.
Sector-wise Performance
Sectoral indices showed a mixed trend, with sharp selling seen in rate- and sentiment-sensitive pockets:
- Nifty Realty fell 1.99 per cent, emerging as the worst-performing sector amid concerns over interest rates and demand outlook.
- Nifty Media declined 1.84 per cent, weighed down by stock-specific weakness.
- Nifty Oil & Gas slipped 1.56 per cent, tracking volatility in global energy prices and profit-taking in select counters.
On the positive side:
- Nifty FMCG gained 0.67 per cent, supported by defensive buying as investors sought relative stability.
- Nifty Auto edged up 0.13 per cent, aided by selective buying in automobile stocks.
Broader Market Underperforms
The broader market continued to lag frontline indices. The Nifty Midcap 100 index closed 0.37 per cent lower, while the Nifty Smallcap index declined a sharper 0.99 per cent, reflecting risk aversion among investors and continued pressure on smaller stocks.
Market Performance in Perspective
So far in 2026, both the Sensex and the Nifty have declined by around 2 per cent, marking a weak start to the year. This contrasts with 2025, when benchmark indices gained 8–10 per cent, though that performance itself was lower compared to earlier years.
Looking further back, the Sensex and Nifty posted gains of about 9–10 per cent in 2024, while 2023 was a stronger year with cumulative returns of 16–17 per cent. In 2022, however, market gains were modest at around 3 per cent.
Outlook
Analysts believe near-term market direction will remain volatile, with investors closely watching global developments, trade-related uncertainties, FPI flows, and upcoming corporate earnings. Until clarity emerges on geopolitical and trade issues, market participants are expected to remain selective and cautious.