Summary of this article
Sensex gained 187.64 points to 83,570.35, while Nifty 50 rose 0.11 per cent to 25,694.35
The Nifty IT index gained 3.34 per cent, led by a 5.63 per cent rally in Infosys shares
Rally in IT stocks came after Infosys raised its revenue growth target
Domestic equities saw a volatile session on January 16, and eventually closed higher in the green. Both the Nifty 50 and Sensex opened on a firm note but gave up most of their intraday gains before settling in the green. The rally was largely driven by IT counters, which outperformed their peers, providing some support to the broader market amid mixed investor sentiment.
At close, Sensex was up 187.64 points, or 0.23 per cent at 83,570.35, and Nifty 50 was up 28.75 points, or 0.11 per cent at 25,694.35.
Broader market indices were mixed, as Nifty Midcap 100 closed 0.16 per cent higher, whereas Nifty Smallcap 100 ended 0.28 per cent lower. Nifty 500, which represents more than 92 per cent of the free-float market capitalisation, settled flat with a slight positive bias.
Ajit Mishra, senior vice president of research at Religare Broking, said in a post-market note that the market was buoyed by earnings optimism, though mixed global cues kept investors cautious. "The earnings upgrade from Infosys helped improve risk appetite and brought some stability after recent uncertainty," he noted. He added that concerns over a weaker rupee and ongoing global trade issues remained on traders’ radar. Mishra further said that "overall participation stayed selective and stock-specific”.
IT Lead Gains
The Nifty IT index gained 3.34 per cent, led by a 5.63 per cent rally in Infosys shares after the company raised its FY26 revenue growth guidance to 3–3.5 per cent in constant currency terms, up from the earlier forecast of 2–3 per cent.
The broader IT pack also benefited as optimism around earnings and growth prospects drove the sector higher.
Following IT, Nifty PSU Bank also gained 1.16 per cent. Nifty Bank, which tracks the performance of 12 most valuable and actively traded stocks from the sector, gained 0.86 per cent.
Nifty Financial Services, Nifty Realty, Nifty Private Bank, and Nifty Oil and Gas also ended the day in green.
On the other hand, Nifty Pharma, Nifty Healthcare, and Nifty Consumer Durables were the biggest sectoral losers during the session. Metals, Auto, Chemicals, Media and FMCG also ended the day in red.
Nifty 50: Top Gainers & Losers
Among the major gainers in the Nifty 50 index were Infosys, Tech Mahindra, Wipro, HCL Technology, Tata Consultancy Services (TCS), Shriram Finance, Tata Consumer Products, and Tata Motors Passenger Vehicle.
On the other hand, Eternal (formerly Zomato), Jio Financial Services, Cipla, Hindalco, Asian Paints, Sun Pharma, ITC, Maruti Suzuki, Bharat Electronics, and HDFC Life Insurance were the biggest losers of the day.
Stock Market Outlook: What To Watch Next
Market participants will be reacting to the Q3FY26 earnings report of as many as 58 BSE-listed companies when trading resumes on January 19. These include banking giants HDFC Bank, ICICI Bank and Reliance Industries.
Iran has warned the US that it will hit American bases if Washington takes any military action. Over the weekend, any developments in the ongoing US-Iran standoff would be critical to watch. The rupee (INR) weakened against the dollar (USD) on January 16, with the USD/INR pair quoting 0.47 per cent higher at 90.760. Further depreciation in the rupee will also likely be on market participants’ radar.
