Market Summary
Indian equity benchmarks extended their losing streak for a third session. Both the Nifty 50 and Sensex opened lower and ended with modest declines despite intraday recovery off the day’s lows. Mid‑cap and small‑cap indices, however, outperformed and closed positive, indicating continued interest in broader markets.
| Index | Close | Change | Key notes |
|---|---|---|---|
| Sensex | 84,961.14 | −102.2 pts (−0.12%) | Index recovered from early 442‑pt drop but remained below 50‑day moving average and ~1.6% off its 52‑week high. |
| Nifty 50 | 26,140.75 | −37.95 pts (−0.14%) | Held above the psychological 26,100 level; consolidation expected between 26,000–26,400. |
| Bank Nifty | ~60,150 | Flat | Resilient; stays within 59,550–60,600 range. |
| Nifty IT | +1.7% | IT stocks provided strong support; sector closed at record high. | |
| Nifty Auto | −1.4% | Sector dragged by concerns over input‑cost inflation and demand outlook. |
Sectoral Performance
| Sector/index | Direction | Commentary |
|---|---|---|
| IT | ↑ (≈+1.7%) | Large‑cap software stocks rallied on robust global tech spending outlook; sectoral strength offset declines elsewhere. |
| Consumer Durables | ↑ (≈+1.9%) | Strong festive demand and positive updates from Titan and other discretionary names lifted the sector. |
| Pharma and Chemicals | ↑ (≈+0.6 – 1.0%) | Selective buying amid defensive rotation. |
| Auto | ↓ (−1.4%) | Profit‑taking and inflation worries weighed on auto majors; Maruti Suzuki fell over 2.5%. |
| Oil & Gas / OMCs | ↓ (~0.8%) | Weakness in crude refining margins and tariff‑related concerns led to selling in energy names. |
| Realty & PSU Banks | ↓ (~0.3%) | Investors booked profits after recent rallies; PSU Bank index slipped moderately. |
Key Statistics and Market Breadth
- Market breadth: In the BSE 500 universe, 210 stocks advanced and 287 declined (advance/decline ratio of 0.73), indicating broad‑based weakness despite mid‑cap strength.
- FII/DII flows: Foreign Institutional Investors sold ₹108 crore of equities, while Domestic Institutional Investors bought ₹1,749 crore. Net institutional inflow was positive because domestic flows more than offset foreign selling.
- Volatility & derivatives: India VIX hovered near 10.0, reflecting low volatility. Nifty’s put‑call ratio (PCR) slipped to 0.92 from 1.0, suggesting cautious sentiment. Options positioning indicated heavy open interest around 26,200 strike with expected range between 26,000–26,400.
Top Gainers and Losers (Nifty/Sensex constituents)
| Top gainers | Last price (₹) | % chg | Rationale |
|---|---|---|---|
| Titan Co. | 4,274.5 | +3.96% | Strong Q3 business update; jewellery and watch segments delivered ~40% YoY growth and continued store expansion. |
| HCL Technologies | 1,644.2 | +1.73% | Sector rotation into IT on expectation of solid Q3 results; positive brokerage commentary. |
| Tech Mahindra | 1,627.7 | +1.62% | Buying interest in IT mid‑caps; company’s restructuring efforts and traction in enterprise business aided sentiment. |
| Jio Financial Services | 303.1 | ≈+1.5% | Stock rebounded following regulatory approval for demat business transfer at its parent company. |
| Wipro | 269.6 | ≈+1.2% | Up on hopes of margin expansion and large deal wins ahead of Q3 results. |
| Top losers | Last price (₹) | % chg | Comments |
|---|---|---|---|
| Cipla | 1,464.5 | −4.33% | Profit booking and concerns over pricing pressures in US generics; one of the steepest declines among Nifty stocks. |
| Maruti Suzuki | 16,838 | −2.63% | Auto sector weakness amid cost inflation and cautious demand outlook dragged the stock. |
| Max Healthcare Institute | ~1,045 | −2.14% | Stock slipped as investors rotated out of health‑care names; sector underperformed. |
| Tata Motors Passenger Vehicles | ~627 | −2.20% | Part of auto sell‑off; investors booked profits after recent gains. |
| Kotak Mahindra Bank | 2,120.3 | −1.69% | Fell on risk‑off sentiment in financials and after mixed business update. |
Note: prices are approximate closing values on 7 Jan 2026.
What Moved the Market
- Mixed global cues: Wall Street closed higher overnight, but Asian markets were uneven. South Korea and China posted modest gains whereas Japan’s Nikkei and Hong Kong’s Hang Seng declined. This divergence, coupled with geopolitical worries (US‑Venezuela tensions and renewed tariff threats by the US on Indian exports linked to Russian oil purchases), kept investors cautious.
- Profit‑taking and sector rotation: After hitting record highs earlier in the week, Nifty saw a healthy pullback. Investors booked profits in autos, financials and oil marketing companies. Meanwhile, funds rotated into IT and consumer durables, which provided relative support.
- Institutional flows: FIIs remained net sellers, reflecting risk aversion due to global uncertainties. Strong domestic buying cushioned the downside but volumes were modest.
- Upcoming earnings: Markets are now looking ahead to corporate results. Avenue Supermarts reports on January 10, followed by IT majors TCS and HCL Technologies on January 12. Expectation of robust numbers in IT contributed to the sector’s resilience.
Global Cues
- US markets: The Dow Jones Industrial Average gained ~484 points the previous day on optimism around corporate earnings and stable bond yields. Futures were marginally higher, signalling continued positive bias.
- Asian markets: Traders in Asia remained cautious as geopolitical risks and central‑bank commentary on interest rates dampened risk appetite. Gift Nifty futures indicated a weak start for Indian indices.
- Commodities: Brent crude slipped below $60 per barrel, offering some relief to oil‑importing nations. Gold traded near record highs as safe‑haven demand persisted.
Stocks to Watch and Corporate Updates
- Titan Company – Q3FY26 update showed ~40% YoY growth in consumer businesses with 56 new stores added; jewellery portfolio grew ~41% and international business expanded strongly.
- Jubilant FoodWorks – Reported 13.4% YoY revenue growth; Domino’s India delivered 5% same‑store sales growth and added 114 net stores.
- Godrej Consumer Products – Forecasted double‑digit revenue growth with a strong home‑care segment and mid‑single‑digit growth in personal care; margins expected to normalise.
- Lodha Developers (Macrotech) – Added five projects (GDV ₹33,800 crore) in Mumbai Metropolitan Region, NCR and Bengaluru; pre‑sales grew 25% QoQ in Q3FY26.
- YES Bank – Received approval to transfer its retail demat business to subsidiary YES Securities; aims to streamline operations.
- H.G. Infra Engineering – Received an income‑tax demand notice of ₹154.55 crore for FY2018‑19.
- Dr Reddy’s Laboratories – Launched Hevaxin, India’s first vaccine against the hepatitis E virus, approved for adults aged 18–65.
- Mahindra & Mahindra (M&M) – Management reiterated strong sales momentum outlook supported by new SUVs; stock remains in focus.
- Wipro – Leased ~145,000 sq ft of office space in Navi Mumbai for five years at ₹97 lakh per month, indicating business expansion.
- Adani Enterprises – Its ₹1,000 crore non‑convertible debenture issue was subscribed within 45 minutes; signals robust investor appetite.
- IRB Infrastructure Trust – Won a ₹33,800 crore toll‑operate‑transfer (TOT Bundle 18) project for the Chandikhole–Bhadrak section of NH‑16 in Odisha.
- Biocon Biologics – Plans to introduce three oncology biosimilars, expanding its cancer‑care portfolio.
Additional buzz: BSE and MCX stocks were highlighted for positional trading as analysts see favourable risk–reward; Senco Gold surged 14% after reporting 51% revenue growth; India Energy Exchange (IEX) rose 4% amid easing concerns on market coupling rules.
Technical Levels and Expected Tone for 8 January 2026
Nifty 50
- Immediate support: 26,113
- Demand zone: 26,023 – 25,968 (strong support around 26,000). A break below this zone may invite profit‑taking towards 25,900–25,800.
- Resistance: 26,235 and 26,330. Sustained trade above 26,330 could reignite momentum toward 26,500.
- Bias: Neutral to mildly bearish within 26,000–26,330; broader bullish bias remains intact as long as Nifty holds above 26,000.
Bank Nifty
- Support: Demand zone at 59,770–59,550; next support at 59,330.
- Resistance: 60,300 and 60,600. A decisive close above 60,300 would signal renewed strength, while a fall below 59,550 could lead to consolidation.
Other technical observations
- Moving averages: Sensex trades below its 50‑day moving average but above the 200‑DMA, indicating a mixed medium‑term trend. Nifty is still comfortably above its 20‑, 50‑ and 200‑day EMAs, keeping the broader trend positive.
- Momentum indicators: Nifty’s RSI is around the mid‑50s, suggesting indecision. Bank Nifty’s RSI (~69) remains healthy but near overbought territory; monitoring intraday volatility is advised.
- Volatility: India VIX around 10 signals low implied volatility, supporting range‑bound trading.
Expected tone for the next trading day
Despite global headwinds and recent profit‑taking, the overall market tone remains cautious but constructive. Key drivers for 8 January 2026 will be:
- Range‑bound trade: Indices may oscillate within the 26,000–26,330 zone for Nifty and 59,550–60,600 for Bank Nifty. Unless a strong catalyst emerges, traders should expect consolidation.
- Stock‑specific action: Earnings announcements (DMart, TCS, HCL Tech) and corporate developments will likely drive individual stocks more than the index.
- Sector preference: IT and consumer discretionary sectors may continue to attract flows, whereas autos and energy could see extended weakness. Select mid‑caps could outperform on positive news.
- Strategy: A buy‑on‑dips approach in fundamentally strong large‑caps remains prudent. Traders should maintain tight stop‑losses, avoid over‑leveraging and watch for cues from global markets and commodity prices.
