The domestic equity benchmarks reversed early losses and snapped a five‑day losing streak as investors took comfort from signs of renewed India–US trade engagement. After sliding more than 700 points in the morning, the BSE Sensex rallied over 1,200 points from its intraday low to finish at 83,878.17 (+0.36%), while the NSE Nifty 50 closed at 25,790.25 (+0.42%). The recovery was driven by strength in metals, select financials and PSUs. However, market breadth remained weak—midcap and small‑cap indices slipped 0.4–0.7 % and almost twice as many stocks declined as advanced.
Top indices (close & daily change)
Index
Close
Daily change & %
BSE Sensex
83,878.17
+301.93 (+0.36%)
NSE Nifty 50
25,790.25
+106.95 (+0.42%)
Nifty Bank
59,450.50
+198.95 (+0.34%)
Nifty Midcap 100
48,882.65
–0.1% (approx.)
Nifty Smallcap 100
15,236.20
–0.5% (approx.)
India VIX (volatility)
14.1
+1.8% (higher volatility)
Sectoral performance
Sector (Nifty indices)
Direction/Change
Metal
▲ ~+2.0 % – benefited from strong global metal prices and hopes of a trade breakthrough.
PSU Bank
▲ +0.7 % – gains in State Bank of India, Bank of Maharashtra and Union Bank.
▲ +0.5 % – large banks and insurance stocks recovered after heavy selling last week.
Capital goods
▼ –0.5 % – L&T and other engineering stocks slipped.
Pharma
▼ –0.4 % – profit‑taking after recent gains.
Media & Realty
▼ –1 – 1.5 % – both sectors under pressure amid weak sentiment.
BSE Midcap index
▼ –0.4 % – midcaps lagged.
BSE Smallcap index
▼ –0.7 % – broad market weakness persists.
Market breadth: ~1,365 stocks advanced, 2,561 declined and 158 were unchanged (NSE). The advance/decline ratio remained below 0.6, indicating that gains were limited to a handful of index heavyweights. Around 360 stocks hit 52‑week lows, including Tejas Networks, Signature Global, Tube Investment, Cohance Life, Siemens Energy, IRB Infra and Whirlpool.
Fund flows: Foreign institutional investors continued to be net sellers—roughly ₹3,769 crore of equities were sold in the cash market as of 9 January and cumulative January FPI outflows exceed ₹11,700 crore. Domestic institutional investors purchased about ₹5,596 crore, partially offsetting the foreign selling pressure.
Top gainers & losers (Nifty 500)
Top gainers
LTP (₹)
% change
Commentary
IFCI
56.40
+15.1 %
Rally on expectations of stronger lending momentum.
Force Motors
19,892.00
+6.3 %
Buying ahead of earnings; cyclical revival hopes.
Hindustan Copper
545.70
+4.8 %
Follow‑through buying from rising copper prices.
BSE Ltd.
2,790.60
+4.5 %
Exchange business expected to benefit from strong volumes.
Premier Energies
745.60
+3.9 %
Solar module order wins boosted sentiment.
Hindustan Zinc
628.30
+3.6 %
Global zinc price strength.
Power Finance Corporation
371.80
+3.6 %
Lower bond yields, improved asset quality.
Indian Renewable Energy Agency
141.50
+3.6 %
Up on strong quarterly results.
Home First Finance
1,062.20
+3.5 %
Demand for housing finance stocks.
Linde India
6,105.00
+3.3 %
Industrial gas price hikes support margins.
Top losers
LTP (₹)
% change
Commentary
Tejas Networks
377.60
–9.5 %
Reported quarterly loss, continued margin pressures.
City Union Bank
263.10
–6.4 %
Weak asset‑quality commentary in previous quarter.
Pressure from higher debt and weak quarterly numbers.
Maharashtra Scooters
12,952.00
–4.4 %
Investors booked profits ahead of earnings.
Cohance Lifesciences
457.40
–3.9 %
Earnings disappointment; regulatory concerns.
Radico Khaitan
2,831.80
–3.9 %
Profit‑booking after rally.
Apar Industries
7,879.00
–3.8 %
Selling after strong run‑up in cable stocks.
Prestige Estates
1,505.10
–3.8 %
Realty sector weakness impacted developer stocks.
What moved the market
Early sell‑off & recovery: The indices opened sharply lower amid continued FII selling, geopolitical uncertainties (heightened protests in Iran and rising crude) and anxiety over the U.S.–India trade dispute. The Sensex slid more than 700 points intraday. Sentiment improved after Sergio Gor, the newly appointed U.S. ambassador to India, said Washington and New Delhi would resume discussions on trade issues, easing fears of punitive tariffs. This triggered a short‑covering rally and bargain hunting in heavyweights.
Sector drivers: Metals led the upmove on the back of firm global commodity prices and expectation of improved trade flows. Financials and PSU banks recovered as long‑term investors saw value after last week’s correction. Consumer staples held up due to defensive buying. However, capital goods, pharma, realty and media faced profit‑taking.
Stock‑specific catalysts: Coal India, Trent, Asian Paints, Tata Steel and JSW Steel were among the top index gainers. Tejas Networks slumped nearly 10 % after posting a quarterly loss; Signature Global fell over 5 % after warning that it may miss annual pre‑sales targets. Several mid‑ and small‑cap stocks hit 52‑week lows, dragging market breadth.
FII outflows & rupee pressure: Persistent foreign selling (over ₹3,700 crore net sold by 9 January, and more than ₹11,700 crore in January to date) continued to weigh on sentiment. The rupee remained weak around ₹90.16 per dollar. Domestic institutions were net buyers, cushioning the fall but unable to fully offset the outflows.
Global cues
Wall Street strength: The previous Friday saw the S&P 500 and Nasdaq close at record highs, buoyed by Broadcom and other chipmakers. A weaker‑than‑expected U.S. jobs report fuelled hopes of Federal Reserve interest‑rate cuts, while bond yields edged lower (10‑year Treasury around 4.16 %).
Asian markets: Most Asian indices opened higher as risk appetite returned. Japan’s Nikkei and Hong Kong’s Hang Seng posted gains, and positive sentiment spilled over into Indian markets later in the day. However, unrest in Iran and concerns over Venezuelan oil shipments kept crude prices firm.
Commodities & currencies: Gold hit a record high as traders bet on looser U.S. monetary policy and geopolitical tensions. Brent crude hovered around $63.5 per barrel, while most Asian currencies appreciated against the U.S. dollar, except the Indonesian Rupiah. The dollar index slipped, reflecting expectations of policy easing.
Macro watch: Investors awaited India’s December inflation data due later in the evening and U.S. CPI numbers later in the week. These prints could influence the trajectory of bond yields and risk appetite globally.
Stocks to watch
TCS & HCL Tech: Both IT majors released Q3 FY26 results post‑market. Analysts will examine commentary on BFSI spending and deal wins to gauge prospects for the sector.
Anand Rathi Wealth, Maharashtra Scooters, GTPL Hathway, Gujarat Hotels, Lotus Chocolate, OK Play, Tierra Agrotech – results announced after market hours and could drive these counters.
Avenue Supermarts (DMart): Reported a 18.3 % YoY jump in net profit (₹855.9 crore) and 13.3 % revenue growth in Q3; EBITDA margin improved to 8.1 %. Strong results may attract buyers.
NTPC: Signed a ₹3,800‑crore share purchase agreement with MAHAGENCO to acquire Sinnar Thermal Power Ltd; could see action.
Mahindra & Mahindra: Monthly sales grew 27 % YoY, though exports fell 9 %. Stock may remain in focus.
Shriram Finance: Moody’s affirmed the firm’s rating and upgraded outlook to positive, citing improving asset quality.
Vedanta: NCLT approval for its demerger plan may unlock value.
IREDA: Q3 profit surged 37.6 % to ₹585 crore with lower NPAs, supporting stock momentum.
Lemon Tree Hotels: Warburg Pincus to acquire a 100 % stake in subsidiary Fleur Hotels; stock could react positively.
Other corporate news: Lloyds Engineering signed a technology partnership for marine products; Spandana Sphoorty exploring a merger of its subsidiary; Websol Energy’s 4 GW solar project received approval from the Andhra Pradesh government; Akzo Nobel India appointed Parth Jindal as chairman and re‑designated Rajiv Rajgopal as joint MD & CEO.
Technical outlook & tomorrow’s tone (13 Jan 2026)
Nifty 50 & Sensex: Technically, the benchmarks remain below their 50‑day simple moving averages (around 26,000 on Nifty and 84,900 on Sensex), signalling that the medium‑term uptrend has been challenged. Immediate supports lie at 25,650–25,600 for Nifty and 83,500–83,300 for Sensex. A break below these zones could drag indices to 25,400–25,300 or 83,100–82,800, respectively. On the upside, resistance is seen at 25,900–25,950 on Nifty and 84,300–84,500 on Sensex; only a sustained close above these levels would reinstate bullish momentum.
Nifty Bank: The index has been consolidating after profit‑booking. Key support lies at 59,000–58,700 (confluence of the 50‑day EMA and previous month’s low). Resistance sits near 59,500; a breakout above this could open the door to 60,400. Below 58,700, a deeper correction is possible.
Market tone for 13 Jan: Despite the late rebound, overall sentiment remains cautious due to persistent FII selling, elevated volatility and looming macro data. The market is likely to stay range‑bound with a ‘buy on dips and sell on rallies’ approach. Traders should monitor support/resistance levels closely and watch for earnings from IT majors and inflation data. A flat-to-soft opening is expected, with stock‑specific moves dominating. Investors may remain selective, favouring sectors with strong fundamentals such as metals, select PSUs, and consumer names, while staying cautious on high‑beta midcaps.
