The Sensex fell sharply by 605 points, or 0.72 per cent, to close at 83,576.24, while the Nifty 50 dropped 194 points, or 0.75 per cent, ending the day at 25,683.30. Weakness was not limited to frontline indices, as broader markets also slipped, with the BSE Midcap index declining 0.90 per cent and the Smallcap index sliding 1.74 per cent. Over the past five sessions, the Sensex has shed 2,186 points, roughly 2.5 per cent, mirroring a similar percentage decline in the Nifty 50.
Weekly Sell-Off Weighs On Sentiment
Market sentiment remained fragile throughout the week amid global uncertainty and selling pressure that intensified toward the end. “Markets witnessed a sharp sell-off during the week, with benchmark indices ending firmly in the red amid weak global cues and heightened uncertainty. Sentiment remained negative throughout the week, and selling pressure intensified in the final sessions. Consequently, the Sensex declined 2.55 per cent to close at 83,576.24, while the Nifty fell 2.45 per cent to 25,683.30, marking one of the steepest weekly declines in recent months,” said Ajit Mishra, SVP, Research, Religare Broking, as per a Livemint report.Earnings Season To Take Centre Stage
Looking ahead, attention is expected to shift decisively toward corporate earnings. Ponmudi R, CEO, Enrich Money, said in the report that third-quarter results from major IT firms will play a decisive role in shaping near-term market direction. HCL Tech, TCS, Infosys, Tech Mahindra, and Wipro, together accounting for nearly 13 per cent of the Nifty’s weight, are scheduled to announce results, making their outlook and commentary especially significant.
"Investor focus will be firmly on post-results management commentary and forward guidance. Key areas to watch will include trends in client IT budgets for the current year, signs of recovery in discretionary spending across industries, and hiring plans—especially in the context of tighter H-1B visa approvals. Equally important will be updates on progress in AI-led technologies and infrastructure, which are increasingly being viewed as the next growth engine for the sector.Earnings from Reliance Industries Ltd will be another major trigger next week, given its significant weight in the indices. Investors will watch trends across the energy, retail and telecom businesses, with guidance on demand, margins and capex likely to drive sentiment," Ponmudi added in the report.
Key Triggers Investors Will Track
Apart from earnings, macroeconomic data will be closely watched, with India’s CPI and WPI inflation numbers, trade balance figures, and foreign exchange reserves due for release. Globally, developments around US trade policy could also influence sentiment.
Commodity prices are another variable, as gold, silver, platinum, and palladium have all posted strong weekly gains amid geopolitical and policy uncertainties.
FII Flows And Technical Levels In Focus
Foreign portfolio investors remain net sellers, continuing a trend seen through much of last year. “FII investment in early 2026 has begun with the continuation of the trend of the previous year. In 2025 FIIs had net sold equity for Rs 166283 crores impacting the performance of the Indian market and also weakening the rupee by about 5 per cent. At the beginning of 2026 the expectation was that FIIs will turn buyers on improvement in GDP growth and corporate earnings,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.From a technical perspective, the Nifty 50 has slipped below key short-term levels. “A decisive break below this zone could extend the decline toward 25,300 and subsequently the key long-term support near the 200-day EMA around 25,150. While momentum indicators suggest oversold conditions that may trigger a short-term technical bounce, any recovery is likely to encounter stiff resistance near previous breakdown levels. On the upside, reclaiming the 20-day EMA around 26,000 will be challenging, with the next major hurdle placed near 26,200,” Mishra said.
For Bank Nifty, “The previous swing low around 58,700 remains a critical support; a break below this could weaken the short-term structure and drag the index toward the 57,800–58,000 zone. On the upside, the 58,800–60,500 range is expected to act as a strong resistance band,” he added.As the market enters the week of January 12, 2026, investors are navigating a landscape defined by a 5-day losing streak and a "bearish engulfing" pattern on the weekly charts. The Sensex recently slipped over 600 points to settle around 83,576, while the Nifty 50 broke below the psychological 26,000 mark.
Here are the key factors that will steer the indices in the coming week:
1. Q3 Earnings Kick-off (TCS & IT Heavyweights)
The corporate earnings season for the October–December quarter (Q3 FY26) takes center stage.
TCS Results: Tata Consultancy Services reports on Monday, Jan 12. Its management commentary on AI-led projects and global demand will set the tone for the entire IT sector.
Other Major Earnings: Tata Elxsi (Jan 13), HDFC Life (Jan 15), and several banking mid-caps like Bank of Maharashtra (Jan 13) and Federal Bank will release their numbers, influencing sectoral movements.
2. Inflation Data (CPI & WPI)
Domestic CPI: India’s retail inflation data for December is scheduled for release on Monday, Jan 12. A reading above the RBI’s comfort zone could dampen hopes for any early interest rate cuts in 2026.
Domestic WPI: Wholesale inflation data follows on Wednesday, Jan 14, providing a clearer picture of input cost pressures for manufacturers.
3. Global Triggers: US Inflation & Fed Sentiment
Global cues remain fragile, with volatility driven by:
US CPI Data: Scheduled for Tuesday, Jan 13. This is the biggest global trigger, as it dictates the US Federal Reserve's trajectory for 2026 interest rate cuts.
Tariff & Trade Concerns: Sentiment has been dented by renewed talk of US tariffs linked to India's oil imports from Russia and geopolitical tensions in South America (Venezuela).
4. Technical Levels to Watch
The technical structure has turned "weak-to-cautious" after five consecutive red candles on the daily chart.
Nifty 50:
Support: 25,600 and 25,300. A breach of 25,300 could trigger a deeper correction.
Resistance: 25,850 and the psychological 26,000 mark.
Sensex:
Support: 82,980 and 82,620.
Resistance: 84,150 and 84,500.
Bank Nifty: The index is showing relative resilience but faces stiff resistance at 59,500. A drop below 59,000 would be a bearish signal.
5. Foreign & Institutional Flows
Foreign Institutional Investors (FIIs) have been persistent sellers in early January. The market will look to see if Domestic Institutional Investors (DIIs) can continue to absorb this selling pressure. A stabilization in the Rupee, which has been hovering near the 90/$ level, will be crucial to attracting FIIs back to Dalal Street.
Summary Strategy: The market is in a "Sell on Rise" phase. Experts suggest a cautious approach, focusing on defensive sectors like IT and Pharma until the Nifty decisively reclaims and sustains above the 26,000 level.
Would you like a detailed schedule of which specific companies are announcing their results on each day this week?
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