Summary of this article
Equity markets ended in red on January 23, extending losses
Here are likely market triggers in the upcoming week when market resumes
Equity markets ended in the red in the week ending January 23, extending losses from previous close. Benchmark indices were dragged down by profit booking ahead of the long weekend amid ongoing geopolitical concerns and caution before the Union Budget 2026 on February 1.
The benchmark Sensex slid 0.94 per cent to close at 81,537.70. The Nifty 50 benchmark dipped 0.95 per cent and settled at 25, 048.65 at the end of the week.
The fall was also marred by a mixed set of earnings posted by companies for the December quarter. The selling pressure was more prominent in the broader market. The BSE Midcap index fell 1.60 per cent, and the Smallcap index fell 2.20 per cent. There was an overall risk-off sentiment among investors.
The fall wiped out around Rs. 6.50 lakh crore worth of market capitalisation of BSE-listed companies, taking a significant hit on investors’ wealth. The market cap of BSE-listed companies ended below Rs. 452 lakh crore in the January 23 session.
Foreign institutional investors (FIIs) sold off from Indian equity markets, and the rupee also touched a record low, nearing the psychologically crucial 92 to a dollar mark.
The coming week is a holiday truncated week, with a market holiday on January 26, on the occasion of Republic Day. From January 27-30, market participants will continue to track any geopolitical development along with global markets ahead of the Budget presentation on February 1.
Stock Market Cues to Watch this Week
These cues are likely to influence investor sentiment in D-Street on January 27, when market resumes:
US Consumer Confidence: Investors will watch out for US consumer confidence data to be released on January 27. The data will provide clarity on consumers’ expectations on prices in the economy, amid rise in prices due to tariffs by the US President Donald Trump’s administration.
FOMC Decision: The US Federal Reserve’s decision on interest rates and outlook on rates and the economy will also be in focus in the coming week. Investors expect the Federal Open Market Committee (FOMC) to maintain a status quo on rates. However, investors will watch out for the number of dissenting votes in the committee to gauge future rate trajectory.
Precious Metal Prices: Movements in prices of gold and silver will also remain in focus. Silver prices crossed $100 to an ounce on January 23 session, driven by industrial demand and speculative trades, even as geopolitical tensions eased. Gold prices retreated from highs by the end of the week, but investors will keep a watch out on the movement of precious metals and any geopolitical development during the week.
Rupee: The Indian currency touched record lows, and is now nearing 92 to a dollar mark. Investors will watch out for the movement in rupee against the dollar along with foreign institutional investor (FII) sentiments during the week.
Earnings: Several key companies will announce their earnings for the third quarter of the financial year over the weekend, such as Kotak Mahindra Bank, Ultratech cement, Axis Bank. Investors will take cues from the earnings when markets resume on January 27. Tata consumer, Asian paints, among others are also going to release their earnings on January 27.
