Sensex Slides, Nifty Breaks 25,700 Mark as Earnings, Global Tariff Fears and FPI Selling Keep Investors on Edge
| Index | Price | Change | % Chg |
| Nifty 50 | 25,665.60 | 66.70 | -0.26% |
| Nifty Bank | 59,580.15 | 1.35 | +0.00% |
| Nifty Financial | 27,501.40 | 84.60 | -0.31% |
| BSE SENSEX | 83,382.71 | 244.98 | -0.29% |
Indian equity markets ended Wednesday’s session on a cautious note, with the Sensex slipping nearly 245 points and the Nifty closing below the crucial 25,700 level, as a mix of global uncertainty, foreign fund outflows and stock-specific reactions to corporate results dictated intraday sentiment.
While frontline indices extended losses for the second straight session, the broader market told a more nuanced story: midcap and smallcap stocks managed to close in the green, highlighting selective risk appetite beneath the surface. The session was also shaped by major company results — particularly Infosys — sectoral churn, and heightened volatility due to the advancement of the weekly derivatives expiry.
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Market Ends Lower but Volatility Defines the Day’s Trading Mood
At the close, the Sensex stood at 83,382.71, down 244.98 points or 0.29 percent, while the Nifty settled at 25,665.60, lower by 66.70 points or 0.26 percent. The Nifty 50 remained below 25,700 throughout the session, reflecting sustained selling pressure at higher levels.
The broader indices outperformed, with BSE Midcap and Smallcap indices ending in the green, reinforcing the theme that investors are rotating rather than exiting the market altogether.
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Sensex: 83,382.71, down 0.29%
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Nifty 50: 25,665.60, down 0.26%
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Bank Nifty: Closed marginally higher at 59,580.15
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India VIX: Rose 1.09% to 11.32, signalling rising uncertainty
As one dealer desk noted, “The market is not in panic, but conviction is missing. Traders are reacting to news flow rather than building directional bets.”
Infosys Q3 Results Trigger IT Sector Weakness and Weigh on Market Sentiment
A key stock-specific trigger for today’s market was the reaction to Infosys Q3 FY26 results. India’s second-largest IT services company reported a 2 percent year-on-year decline in consolidated net profit to ₹6,654 crore, compared with ₹6,806 crore last year. Revenue, however, rose 8.9 percent to ₹45,479 crore, beating Street estimates of ₹45,227 crore.
While the revenue beat offered some comfort, the profit decline and cautious tone across the IT sector dragged sentiment. IT stocks were among the top sectoral losers of the day, with the Nifty IT index ending down 1.08 percent.
This mattered for the broader market because IT heavyweights carry significant weight in both the Sensex and Nifty. The weakness in TCS, Tata Elxsi and other technology counters amplified downside pressure and capped any meaningful recovery attempt.
Global Tariff Concerns and US Supreme Court Decision Keep Investors Nervous
Another major factor shaping today’s market behaviour was global uncertainty linked to US trade policy. Investors remained cautious ahead of the US Supreme Court’s expected decision on the legality of former President Donald Trump’s sweeping tariff measures.
According to Polymarket, a blockchain-based prediction platform, 73 percent of traders are betting that the US Supreme Court will declare the tariffs illegal, while only 27 percent believe the court will rule in favour of Trump’s decision. The binary nature of this outcome has kept global markets, including India, on edge.
Market participants believe that a ruling in favour of tariffs could reignite fears of global trade disruption, directly impacting export-driven sectors such as IT, metals, and manufacturing.
Foreign Investor Selling Continues to Pressure Market Structure
Persistent foreign portfolio investor (FPI) outflows remained a structural overhang. FPIs have sold nearly ₹16,600 crore worth of Indian equities so far in January, following record selling of around ₹1.58 lakh crore in 2025.
This continuous selling has created a fragile undertone in the market, where rallies are being used as opportunities to book profits rather than build aggressive long positions.
One institutional strategist said, “Until FPI flows stabilise, markets will remain range-bound. Domestic liquidity is cushioning the fall, but not strong enough to trigger a sustained breakout.”
Stock Market Top Gainers and Losers Reflect Sectoral Rotation
Today’s stock-specific action once again showed that portfolio performance is being driven by stock selection rather than index direction.
Top Gainers (Nifty Stocks)
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Tata Steel: +3.71%
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NTPC: +3.28%
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Axis Bank: +2.93%
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Hindalco: +2.09%
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ONGC: +1.72%
Top Losers (Nifty Stocks)
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Asian Paints: -2.40%
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TCS: -2.15%
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Tata Consumer: -1.72%
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Maruti Suzuki: -1.69%
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Hindustan Unilever: -1.65%
Sectoral Churn Reflects Rotation Rather Than Broad-Based Selling
Despite the weak close in benchmarks, sectoral performance showed clear rotation.
Top gaining sectors:
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Metal: +2.70%
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Oil & Gas: +0.54%
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Media: +0.11%
Top losing sectors:
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IT: -1.08%
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Realty: -0.92%
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Auto: -0.69%
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FMCG: -0.61%
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Consumer Durables: -0.57%
This divergence suggests that investors are selectively allocating capital to value pockets such as metals, PSU banks and energy, while reducing exposure to expensive defensives and rate-sensitive sectors.
Stock-Specific Action Highlights Where Traders Are Deploying Capital
Beyond indices, several stocks saw sharp moves based on company-specific developments, which directly impacted trader portfolios today.
Notable movers included:
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Union Bank of India surged 8% post Q3 earnings
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Railtel Corporation gained 4% on a ₹15.99 crore order win
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Puravankara jumped 9% after Q3 collections rose 22% and pre-sales climbed 17%
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Tata Elxsi fell 4% as Q3 profit declined 45%
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Polycab India slipped 3% after a block deal involving 7.98 lakh shares
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5paisa Capital rose 3% despite Q3 profit decline
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Oswal Pumps gained 1% on bagging a ₹119.92 crore order
For traders, this reinforced that stock selection continues to matter more than index direction in the current environment.
Technical Levels Signal Range-Bound Market Awaiting Breakout
From a technical perspective, the market remained trapped in a narrow range.
Analysts pointed out key levels:
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Immediate support: 25,600–25,450 on Nifty
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Resistance zone: 25,800–25,900
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Break above 25,900 could open upside towards 26,020
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Break below 25,600 could accelerate selling towards 25,300–25,060
“The intraday market texture is non-directional. Traders are clearly waiting for a breakout trigger, either from global cues or earnings surprises,” said a technical analyst tracking index movements.
Here’s what happened today and why traders reacted
Today’s market behaviour was shaped by a convergence of triggers rather than a single event.
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Infosys Q3 profit decline dragged the IT sector lower
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Persistent FPI outflows kept overall sentiment weak
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Traders stayed cautious ahead of the US Supreme Court’s tariff verdict
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Weekly derivatives expiry was advanced to Wednesday, increasing volatility
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Value buying emerged in metals, PSU banks and oil & gas stocks
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Midcap and smallcap resilience encouraged selective risk-taking
This combination led to a session where indices closed lower, but internal market breadth remained balanced, with advancers (1,573) nearly matching decliners (1,570).
Rupee Weakness Adds Another Layer of Caution for Equity Investors
The rupee closed 6 paise lower at 90.29 against the US dollar, pressured by foreign outflows, elevated crude prices and a stronger dollar. Forex traders warned that the currency could remain under pressure due to global risk aversion and geopolitical tensions.
A weaker rupee impacts import-dependent sectors and can also influence foreign investor sentiment, making this another variable investors are tracking closely.
What Impact This Has on Investors and Traders
For short-term traders, the market remains a stock-picker’s environment rather than a trending index market. Volatility around earnings, news flows and global cues is creating opportunities, but also raising the risk of whipsaws.
For retail investors, the message is more nuanced:
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Midcap and smallcap resilience suggests domestic participation remains strong
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Continued FPI selling signals caution for aggressive fresh allocations
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Earnings reactions like Infosys show that results will drive sector moves
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Range-bound markets favour staggered investing over lump-sum bets
For medium- to long-term investors, the ongoing correction and volatility may offer selective accumulation opportunities in quality stocks, particularly in sectors seeing value buying such as metals, PSU banks and infrastructure-linked names.
Market Outlook Hinges on Global Clarity and Earnings Momentum
Going forward, the next directional move in markets is likely to depend on three factors: the US Supreme Court decision on tariffs, the trajectory of foreign fund flows, and the ongoing corporate earnings season.
Until clarity emerges, the market is expected to remain volatile but contained within a defined range, with stock-specific action continuing to dominate portfolio outcomes.
3 Key Factors Behind Market’s Intraday Recovery From Lows
Although benchmarks closed in red, markets recovered significantly from the day’s lows. Three factors supported this recovery:
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Value buying: After six declines in the last seven sessions, buyers emerged in metals, oil & gas and select consumer durables
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Expiry-related volatility: Weekly derivatives expiry was advanced to Wednesday, increasing intraday swings and short-covering
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Positive Asian cues: Asian indices such as Nikkei, Hang Seng and Kospi were trading higher, supporting sentiment
tocks in Ban List Today Add Another Layer of Trading Caution
Derivative traders stayed cautious as SAMMAANCAP and SAIL remained in the F&O ban list, meaning no fresh futures and options positions are permitted in these counters. Stocks in the ban period often witness sudden drops in liquidity and sharp intraday swings, which forces traders to avoid aggressive momentum strategies in these names.
Several stocks also moved dangerously close to entering the ban list due to very high market-wide position limits (MWPL). These include KAYNES, IRCTC, IEX, RVNL, Bandhan Bank, NBCC, Manappuram Finance, IREDA, Dixon Technologies, Inox Wind, LIC Housing Finance, HUDCO, RBL Bank, Mazagon Dock, Biocon, NMDC, Concor, Tata Technologies, Godrej Properties, BHEL, National Aluminium, Ambuja Cements, Vodafone Idea, Aditya Birla Capital, CDSL, IRFC, Angel One, PGEL, Patanjali Foods, Exide Industries, Kalyan Jewellers, Crompton Greaves Consumer, DLF, REC, Bharat Dynamics, Tata Elxsi, MCX, Jubilant FoodWorks and Jio Financial Services. Traders closely monitor these names because once MWPL crosses the threshold, they can officially enter the ban list, restricting fresh derivative positions.
Interestingly, there were no confirmed exits from the ban list today, indicating that speculative interest remains elevated in several counters. For active traders, this means strategy flexibility continues to be limited in select stocks, while volatility risk remains higher than usual in crowded F&O trades.
FAQs Markets Slip in Choppy Trade
Q. Why did the Sensex fall even when midcap and smallcap stocks ended in the green?
The Sensex declined mainly due to weakness in heavyweight stocks from the IT, FMCG and auto sectors, which have a larger impact on the index. Meanwhile, midcap and smallcap stocks benefited from selective value buying, indicating that investors are rotating money within the market rather than exiting equities altogether.
Q. How did Infosys Q3 results influence today’s market sentiment?
Infosys reported a year-on-year decline in profit despite better-than-expected revenue growth, which triggered selling across IT stocks. Since IT stocks have significant weight in both the Sensex and Nifty, this sectoral weakness directly dragged the broader indices lower during the session.
Q. Why are foreign portfolio investor (FPI) outflows worrying for Indian stock market investors?
FPIs have sold nearly ₹16,600 crore worth of equities in January, which reduces liquidity in the market. Sustained foreign selling often limits upside rallies, increases volatility, and makes markets more sensitive to negative global news, impacting both short-term traders and long-term investors.
Q. What does it mean when a stock enters the F&O ban list, and how does it affect traders?
When a stock enters the F&O ban list, traders are not allowed to take fresh derivative positions in that stock. This usually leads to reduced liquidity, unpredictable price swings, and forced exit of certain strategies, which is why active traders track the ban list very closely every day.
Q. Why are markets reacting to the US Supreme Court decision on Trump-era tariffs?
The decision could influence global trade flows, export demand, and risk sentiment across world markets. If tariffs are upheld, export-heavy sectors such as IT and manufacturing could face pressure, which is why Indian markets remain cautious ahead of the verdict.
Q. How should retail investors interpret range-bound markets like the current Nifty movement?
A range-bound market typically signals indecision rather than a trend. For retail investors, this environment usually favours staggered investing, SIP-based accumulation and stock-specific selection instead of aggressive lump-sum investments based on index direction.
Q. Does a weak rupee impact Indian stock market investments?
Yes, a weakening rupee can hurt foreign investor sentiment and increase import costs for certain sectors. However, it can also benefit export-oriented companies such as IT and pharma. Investors often need to evaluate currency movement along with sector exposure in their portfolio.
