Weekly market update, Jan 16, 2026

The Indian stock market concluded a volatile week ending January 16, 2026, with benchmark indices ending largely flat but showing signs of resilience. While global uncertainties weighed on sentiment, a strong start to the Q3 FY26 earnings season, particularly from the IT and banking sectors, provided a much-needed lift. The broader market indices, BSE Midcap and BSE Smallcap lost 0.25% and 1.11%, respectively. On the BSE sectoral front, it was mixed. Metal was the major gainer, up 4.52% followed by Commodities, up 2.69% and IT, up 2.66%. Consumer durables were the major loser, down 2.44% followed by Reality, down 2.33% and Power, down 1.17%.

Looking ahead, Analysts expect that markets expected to be driven by earnings outcomes, global trade signals and geopolitical developments in the coming week. Banking stocks are likely to remain in the spotlight as markets likely to react on quarterly results from heavyweights such as ICICI Bank and HDFC Bank, along with a host of private and public sector lenders. On the global front, uncertainty around U.S. trade negotiations remain a headwind for sentiment. However, attention is shifting to the India–EU trade agreement, which is expected to be concluded later this month and could act as a meaningful catalyst for improved investor confidence. On the global front, US macroeconomic data, including GDP growth, inflation trends, jobless claims, and PMI readings, will influence risk sentiment and currency movement.

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