Indian equities continued to decline on Wednesday, 21 January 2026, marking the third straight session of losses. Risk‐off sentiment in global markets, fresh trade tensions between the US and Europe and a record‑weak rupee kept investor sentiment fragile. Major indices closed in the red despite value buying late in the session. The Sensex lost roughly one‑third of a percent while the Nifty 50 slipped around 0.3 %. Broader indices fared worse – the Nifty MidCap 100 and SmallCap indices fell about 1 %, and market breadth was deeply negative with more than 2,500 stocks declining.
Top indices
Index
Close
Change
Notes
BSE Sensex
≈81,910
−0.33 % (−270 pts)
Third straight decline; heavyweights in financials dragged the index.
Nifty 50
≈25,157.5
−0.30 % (−75 pts)
Fell below 25,200 despite late recovery; trades near its 200‑day moving average.
Bank Nifty
≈59,404
−0.81 % (−487 pts)
Underperformed as selling intensified in private and PSU banks.
India VIX (volatility index)
≈ 14
+8 %
Spike in volatility signals investors’ fear.
USD/INR
≈ ₹91.70
Weakening
Rupee hit a fresh record low amid heavy foreign outflows.
Sectoral performance
Sector
Performance & tone
Metals & Mining
Outperformed;Nifty Metal index closed marginally higher as global metal prices firmed up. Hindalco and JSW Steel topped the gainers’ list.
Oil & Gas
Modestly positive; buying in upstream majors and ONGC supported the index.
Pharma & Healthcare
About −0.5 %; selling in large‑cap pharma names offset gains in Max Healthcare and Dr Reddy’s.
Information Technology
−0.5 %; weak US tech sentiment weighed on IT names such as HCL Tech and Infosys.
Private & PSU Banks
≈−0.5 % to −1 %; ICICI Bank, HDFC Bank, Axis Bank and SBI slipped as rising bond yields and FII selling hurt bank stocks.
Realty
Worst performer, down 3–4 %; interest‑sensitive realty counters faced heavy selling.
−1 % and −0.9 %; broad-based weakness and risk aversion continued.
Key market statistics
Market breadth: ~1,357 stocks advanced, 2,509 declined and 127 remained unchanged on the BSE, pointing to broad selling pressure.
Turnover: Trading volumes were similar to Tuesday but skewed toward defensive sectors. Heavy volumes were seen in ICICI Bank, Eternal, Bharat Electronics and Tata Consumer Products.
Rupee: The rupee settled around ₹91.70 per USD, its weakest close on record. Persistent foreign outflows and global risk aversion drove the depreciation.
India VIX: The volatility gauge surged roughly 8 % to around 14, underscoring heightened uncertainty.
Top Nifty gainers and losers
Top gainers (Nifty 50)
Stock
Last traded price (₹)
Change
Notes
Eternal
282.8
+4.90 %
Top gainer; strong buying ahead of quarterly results and optimism around its consumer business.
InterGlobe Aviation (IndiGo)
4,857.0
+1.40 %
Gains came from firm passenger traffic and strong cash flows; aviation stocks remained resilient.
Max Healthcare
1,006.0
+1.32 %
Healthcare names held up amid market volatility.
Hindalco
940.0
+1.28 %
Buoyed by higher aluminium prices and improved overseas demand.
JSW Steel
1,174.8
+1.28 %
Followed metals peers higher as iron‑ore prices firmed up.
Top losers (Nifty 50)
Stock
Last traded price (₹)
Change
Notes
ICICI Bank
1,346.9
−2.10 %
Led the decline; profit‑booking and heavy FII selling in financials hit the stock.
Trent
3,760.1
−1.98 %
Consumption play corrected after strong run‑up.
Tata Consumer Products
1,165.0
−1.69 %
FMCG counters saw selling pressure despite their defensive tag.
Bharat Electronics (BEL)
403.2
−1.50 %
Declined amid correction in defence names.
HDFC Life
723.0
−1.24 %
Life insurers slipped in line with the market.
What moved the market?
Global worries: Financial markets globally were rattled by escalating trade tensions. The US administration hinted at steep tariffs on European nations over the dispute on Greenland, reviving fears of a trans‑Atlantic trade war. Equity benchmarks in the US (Dow, S&P 500, Nasdaq) and Europe posted their largest declines in months overnight, dragging Asian markets lower at the start of Indian trade.
Foreign selling: Foreign institutional investors (FIIs) were persistent net sellers amid the geopolitical uncertainty and a surging US dollar. Large outflows pushed the rupee to a new low around ₹91.70 per dollar, raising imported inflation concerns.
Weak earnings: Earnings disappointments in IT and banking names weighed on sentiment. Several mid‑tier IT firms reported lower‑than‑expected margins for the December quarter. Private banks also announced tepid results, adding pressure to the banking indices.
Rising volatility: With the Nifty hovering around its 200‑day exponential moving average, traders preferred to book profits. The India VIX jumped around 8 % to near 14, signalling expectations of further swings.
Domestic factors: Investors remained cautious ahead of the Union Budget on 1 February 2026. Concerns about potential tax changes and spending plans added to uncertainty. Meanwhile, domestic institutions provided support on dips, limiting deeper losses.
Global cues
US markets: Overnight, the Dow Jones slumped around 1.8 %, the S&P 500 fell over 2 % and the Nasdaq dropped more than 2 %. The sell‑off was driven by concerns over new tariffs and higher bond yields. The VIX index in the US spiked, indicating a surge in risk aversion.
Europe: Major European indices closed lower as investors worried about retaliatory measures and weak economic data. Energy and consumer discretionary stocks led the decline. The euro weakened against the dollar amid uncertainty.
Asia: Most Asian markets traded in the red on Wednesday. Japan’s Nikkei, South Korea’s Kospi and Hong Kong’s Hang Seng indices were down, while China’s Shanghai Composite managed marginal gains. The risk‑off mood spilled into emerging markets, including India.
Commodities: Brent crude hovered around US$64/barrel. Gold prices firmed as investors sought safe havens.
Stocks to watch
A number of stocks could be in focus on the next trading day due to corporate actions, earnings announcements or other news:
Stock
Catalyst
HCL Technologies
Partnered with US IT distributor Carahsoft to supply AI, cloud and cybersecurity services to US public sector agencies – opens up large new markets.
Eternal
Scheduled to report results and recently topped the gainer list; volatility likely.
Persistent Systems
Reported robust Q3 revenue growth and margin improvement; announced ₹22/share dividend.
Beat estimates with strong interest income and profit growth; asset quality improved.
UPL & Advanta
UPL’s subsidiary Advanta Enterprises filed for an initial public offering (IPO); UPL to sell part of its stake.
HPCL
Signed a 10‑year LNG procurement agreement with Abu Dhabi Gas Liquefaction Co. for its Gujarat regasification terminal.
Amber Enterprises
Allotted 100 acres in Uttar Pradesh’s YEIDA region to set up a large manufacturing facility alongside its subsidiary Ascent‑K Circuit.
Dr Reddy’s Laboratories
Scheduled to announce results; investors will watch margin guidance and US pipeline commentary.
JSW Energy
Subsidiary signed a 1,600 MW power supply agreement with West Bengal’s state utility; long‑term capacity addition to boost revenue visibility.
Power Grid Corp
Approved a ₹9.14 billion investment to procure spare transformers and reactors for regional power committees, enhancing grid resilience.
Corporate updates
JSW Energy: JSW Thermal Energy Two signed a power supply agreement with West Bengal State Electricity Distribution Co. to build a 1,600 MW thermal plant at Salboni. This is JSW Energy’s second such agreement with the state and forms part of its plan to expand thermal capacity to over 10 GW by 2030.
HCLTech: Formed a partnership with US reseller Carahsoft Technology to offer AI, cloud and cybersecurity solutions to US public sector agencies. The tie‑up gives HCLTech access to government clients via Carahsoft’s contract networks.
Power Grid Corporation: Its board cleared a ₹9.14 billion investment to procure spare transformers and reactors across western, southern and north‑eastern regional power committees, ensuring reliability of transmission networks.
HPCL: Signed a long‑term LNG supply agreement with Abu Dhabi Gas Liquefaction Company for its Chhara LNG terminal in Gujarat. The contract ensures secure fuel supply for a decade.
UPL/Advanta: Advanta Enterprises, a subsidiary of UPL, filed a Draft Red Herring Prospectus with SEBI for an IPO comprising an offer for sale of 3.61 crore equity shares, including UPL’s sale of 2.81 crore shares.
Amber Enterprises: Received land allotment from YEIDA for two manufacturing facilities near the upcoming Jewar Airport; combined investment outlay is estimated at ₹6,785 crore.
Max Healthcare, Rallis India, Persistent Systems, United Spirits and other companies released earnings during the session, influencing individual stock movements.
Outlook for the next trading day (Thursday, 22 January 2026)
Technical levels and expected tone
Nifty 50: The index closed around its 200‑day exponential moving average (≈25,160). Immediate support is seen near 25,000–24,800. A break below 24,800 could open the door to 24,500 levels. On the upside, 25,300–25,400 is likely to act as strong resistance, followed by 25,500–25,700. Technical indicators (RSI below 30) suggest oversold conditions, implying a possible short‑term rebound, but sustainability will depend on global cues and foreign flows.
Bank Nifty: Support lies near 59,000 with further support around 58,700–58,500. Resistance is expected around 59,800–60,000. The index has broken below its short‑term moving averages, so rallies may face selling pressure.
Market tone: The overall tone for Thursday is cautious to slightly negative, given ongoing geopolitical uncertainties and persistent FII selling. Volatility is expected to remain elevated. Traders may adopt a sell‑on‑rise approach around resistance levels, while investors with a medium‑ to long‑term horizon could look for selective buying opportunities in defensive sectors (healthcare, consumption) and quality banking names.
Key catalysts to watch:
Developments around US–Europe trade tensions and any statements from US leadership at the Davos forum.
Movements in US bond yields and the dollar index, which influence FII flows.
Earnings announcements from large caps such as Dr Reddy’s, Eternal and other major corporates.
Global risk sentiment reflected by overnight moves in US and Asian markets.
Pre‑budget policy expectations and domestic macroeconomic indicators.
Concluding remarks
Wednesday’s session underscored that Indian markets remain hostage to global developments and foreign capital flows. While strong domestic demand and supportive policies offer medium‑term resilience, near‑term volatility is likely to persist until clarity emerges on the trade front and the rupee finds stability. Traders should respect support and resistance levels and manage positions carefully, whereas long‑term investors may consider staggered buying into quality names during dips.
