Weekly market update, Jan 23, 2026

The Indian equity markets declined, led by renewed global trade tensions. Ongoing geopolitical concerns, caution ahead of the Union Budget 2026, and mixed Q3 earnings further dampened the overall market sentiment. On a weekly basis, the BSE Sensex tumbled 2.65% and the Nifty 50 also slumped by 2.51%. The broader market indices, BSE Midcap and BSE Smallcap lost 4.20% and 5.13%, respectively. On the BSE sectoral front, most sectors declined. Realty was the major loser, down 3.35%, followed by Bankex and auto, down 3.09% and 2.87%, respectively.

Market direction in the coming week is likely to be driven by global macroeconomic signals and domestic fiscal expectations. Investors will closely track guidance from the Fed on the trajectory of interest rate cuts, while positioning may be influenced by anticipation surrounding the Union Budget, particularly any measures aimed at easing external trade pressures and supporting capital flows. The progress on India-US trade deal negotiations and trading activity of foreign investors would also influence the overall market trend.

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