Indian Developments
Nifty 50 closed at 25,048.65, down –2.40% w/w (vs 25,665.60 a week ago). Broader markets fell sharply, with Nifty Midcap 100 –4.39% and Nifty Small cap 100 –6.08% driven by persistent FII selling & heavy index shorts, Realty-led drawdown from stretched levels, valuation reset in small caps, mixed global cues, macro headwinds and pre budget caution.
India VIX jumped +25.35% w/w, its biggest single-week spike in several months, signalling heightened uncertainty
Realty, Consumer Durables, Internet, and High Beta themes saw the sharpest drawdowns.
FIIs were heavy net sellers, pulling out ?10,539 crore, which was the primary drag on markets. On contrary, DII’s infused capital of Rs 16,643 in the market.
Rupee weakness intensified during the week, with the currency slipping near record lows around ?91.8–92 per USD, weighed down by geopolitical headwinds and persistent foreign outflows.
Sectoral Developments
Major sectors declined with PSU Banks (-1.45%) and FMCG(-1.14%) cushioned declines modestly, but the major standout was Nifty IT, which gained +1.10% w/w, defying broad market weakness supported by stable demand commentary and global tech resilience.
Deep decline was Realty with the hit of -11.02% followed by consumer durables (-7.59%), energy (-4.40%), healthcare ( -4.11%) and overall cyclicals lagged sharply.
Global Developments
U.S. equities moderated following corporate earnings resets and cautious commentary from Federal Reserve speakers. S&P declined by -0.43% and Dow jones and Nasdaq 100 fall by 1.96% and 0.11% respectively.
Europe: FTSE 100 mildly declined by ~0.8% w/w and Germany DAX experienced sharp declines of ~2%.
China: Mainland indices remained under pressure; with hang Seng fall by 1.6% while Shanghai Composite edged up ~0.3%.
Korea Kospi Index was the major standout emerging as the top performer with gains of 3.2%.
Other Markets
Source: www.nseindices.com; MCX Gold Prices; Economic times, Bloomberg.
Data for week ended on January 23, 2026.
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