Sensex tanks 769 pts, Nifty slips below 25,050 amid FII outflows
The Sensex and Nifty opened marginally higher, supported by positive cues from Asian markets and easing geopolitical concerns linked to Greenland. However, sentiment turned decisively weaker post noon, with aggressive profit-booking and sustained selling pressure dragging the indices into the red. The Nifty closed below the 25,050 level, with all NSE sectoral indices ending in the red. Realty and PSU bank stocks led the losses amid heavy selling pressure.
Foreign fund outflows remained the key overhang, with FIIs extending their net selling streak to 13 consecutive sessions in January, a trend that has steadily dented market capitalisation and investor confidence.
Pressure on domestic shares intensified as the Indian rupee slid to a fresh all-time low against the US dollar, amplifying risk aversion. A subdued earnings season added to the gloom, as weak December-quarter results from several heavyweight companies triggered sharp, stock-specific declines.
Rising crude oil prices further stoked concerns over inflation and external balances, capping any recovery attempts. The focus is now shifting to the Union Budget, which will take place on February 1.
The S&P BSE Sensex tumbled 769.67 points or 0.94% to 81,537.70. The Nifty 50 index lost 241.25 points or 0.95% to 25,048.65.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index dropped 1.56%, while the S&P BSE Small-Cap index fell 2.19%.
The market breadth was weak. On the BSE, 1,321 shares rose and 2,887 shares fell. A total of 157 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 6.31% to 14.19.
The rupee hit a fresh record low of 91.99 against the US dollar in intraday trade on Friday, pressured by weak global cues and persistent dollar demand.
Indian stock market will remain shut on Monday, 26 January 2026, for Republic Day.
World Economic Forum:
In a surprise appearance at the World Economic Forum in Davos, billionaire Elon Musk said artificial intelligence could become smarter than all of humanity combined within the next five years.
India has emerged as a premier hub for artificial intelligence applications, leveraging its tech-positive population and strong software legacy to transition into a full-on AI economy, according to the World Economic Forums Cathy Li.
India is a fascinating market, particularly in terms of AI applications and services. It is a no-brainer to leverage these strengths, and the country is already using its strong building blocks to move toward a full-on AI economy, she said.
Numbers to Track:
The yield on India's 10-year benchmark federal paper was up 0.27% to 6.654 as compared with the previous close of 6.636.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 91.8950 compared with its close of 91.5800 during the previous trading session.
MCX Gold futures for 5 February 2025 settlement gained 0.25% to Rs 1,56,769.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.01% to 98.17.
The United States 10-year bond yield declined 0.28% to 4.239.
In the commodities market, Brent crude for March 2025 settlement gained 80 cents or 1.25% to $64.86 a barrel.
Global Markets:
Most European shares declined on Friday as investors digest events at Davos, including Ukrainian President Volodymyr Zelenskyy's excoriating speech about the continent.
Asian indices ended higher, tracking Wall Street gains as geopolitical concerns eased.
The Bank of Japan kept its key policy rate unchanged at 0.75% but raised Japans growth outlook ahead of the upcoming election. The central bank lifted its GDP growth forecast for FY26 to 0.9% from 0.7% and for FY27 to 1% from 0.7%, citing a moderate global recovery, rising wages and prices, supportive government measures, and accommodative financial conditions.
Japans headline inflation rate in December slowed sharply to 2.1%, its lowest level since March 2022. Its core inflation rate came in at 2.4% on the year.
Some tech stocks in Asia fell after shares of California-based Intel plummeted 13% in after-hours U.S. trading on its soft guidance for the current quarter, despite posting fourth-quarter earnings beats Thursday.
Overnight in the U.S., the main benchmarks extended their gains from the previous session after Greenland tensions eased.
The Dow Jones Industrial Average advanced 306.78 points, or 0.63%, and closed at 49,384.01. The 30-stock index recovered from the losses seen earlier this week following President Donald Trumps new Europe tariffs announcement.
The S&P 500 climbed 0.55% and ended at 6,913.35. The Nasdaq Composite advanced 0.91% and settled at 23,436.02, supported by gains in Nvidia, Microsoft, and Meta Platforms.
Stocks in Spotlight:
Adani Group stocks came under heavy selling pressure on Friday after media reports said the U.S. Securities and Exchange Commission (SEC) has sought court approval to directly email summons to Gautam Adani and Sagar Adani, citing court filings. The development triggered sharp declines across the conglomerates listed entities as investors reacted to the regulatory overhang.
Shares of Adani Green Energy plunged 14.63%, while Adani Energy Solutions fell 11.97%. Adani Enterprises dropped 10.76% and Adani Ports and Special Economic Zone slid 7.52%. Adani Total Gas declined 5.71%, while Adani Power lost 5.50%.
Meanwhile, Adani Energy Solutions reported 1.68% decline in consolidated net profit to Rs 552.31 crore in Q3 FY26, compared with Rs 561.78 crore in Q3 FY25. However, revenue from operations jumped 15.73% year on year (YoY) to Rs 6,729.65 crore in Q3 FY26.
Home First Finance Company India jumped 5.97% after the companys standalone net profit jumped 43.97% to Rs 140.20 crore on 18.8% increase in revenue from operations to Rs 482.24 crore in Q3 FY26 over Q3 FY25.
Atul rose 1.04% after the companys consolidated net profit surged 47.82% to Rs 160.74 crore in Q3 FY26 compared with Rs 108.74 crore in Q3 FY25. Revenue from operations increased 11.06% YoY to Rs 1,573.62 crore in the quarter ended 31 December 2025.
Innova Captab soared 3.28% after the companys consolidated net profit jumped 23.11% to Rs 42.14 crore on 42.29% increase in revenue from operations to Rs 450.29 crore in Q3 FY26 over Q3 FY25.
Cipla tanked 4.13% after the company reported 56.96% decrease in consolidated net profit to Rs 675.80 crore in Q3 FY26 as against Rs 1,570.51 crore in Q3 FY25. Total revenue from operations marginally rose 0.02% to Rs 7,074.48 crore in Q3 FY26 as against Rs 7,072.97 crore in Q3 FY25.
InterGlobe Aviaition (Indigo) declined 4.27% after the companys consolidated net profit tumbled 77.55% to Rs 549.8 crore despite 6.16% increase in revenue from operations to Rs 23,471.9 crore in Q3 FY26 over Q3 FY25.
Coforge declined 2.81% after the company reported 33.4% fall in consolidated net profit to Rs 250.2 crore despite a 5.1% increase in gross revenues to Rs 4,188.1 crore in Q3 FY26 as compared with Q2 FY26.
Gujarat State Petronet (GSPL) fell 1.39% after its standalone net profit fell 15.70% to Rs 114.26 crore in Q3 FY26, even as revenue from operations rose 4.5% to Rs 272.19 crore compared with the same quarter last year.
Computer Age Management Services declined 3.96%. The company reported 0.04% rise in consolidated net profit to Rs 125.53 crore on a 5.52% increase in revenue from operations from operations to Rs 390.13 crore in Q3 FY26 as compared with Q3 FY25.
DLF fell 4.08%. The company reported an 13.66% rise in consolidated net profit to Rs 1,203.36 crore in Q3 FY26, compared with Rs 1,058.73 crore posted in Q3 FY25. Revenue from operations surged 32.15% year-on-year (YoY) to Rs 2,020.22 crore in the quarter ended 31 December 2025.
Ideaforge Technology slipped 7.01% after the company reported a consolidated net loss of Rs 33.85 crore in Q3 FY26, widening from Rs 24.02 crore in Q3 FY25. Despite the wider loss, the companys revenue from operations increased 79.15% year on year (YoY) to Rs 31.55 crore during the quarter.
Premier Energies fell 7.36%. The company reported a 53.44% year-on-year (YoY) surge in consolidated net profit to Rs 391.62 crore in Q3 FY26, compared with Rs 255.22 crore in Q3 FY25. Revenue from operations jumped 13.02% YoY to Rs 1,936.46 crore for the quarter ended 31 December 2025.
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