Image Source: Subkuz News
Friday, January 16, 2026 — Dalal Street returned from its mid-week break with a renewed sense of optimism, as benchmark indices successfully snapped a two-day losing streak. The recovery was largely fueled by a stellar performance in the IT sector, helping investors navigate a complex web of global trade uncertainties and persistent foreign fund outflows.
The Scorecard: A Green Finish
After a choppy session that saw the BSE Sensex surge by over 750 points in intraday trade, profit-booking at the tail end of the day led to more modest closing gains.
The “Infosys Factor”
The undisputed star of the day was Infosys, which jumped 5.6% after the IT giant raised its revenue growth guidance for FY26 to 3–3.5%. This move acted as a catalyst for the broader technology sector, with peers like Tech Mahindra (+5.2%) and Wipro (+2.5%) following suit.
“The market is currently in a ‘directionless drift,’ but stock-specific triggers like the Q3 earnings reports are providing much-needed pockets of liquidity and momentum,” noted VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
Market Movers & Shakers
While tech dominated, the landscape remained mixed as other sectors struggled to find footing.
- Top Gainers :
- Infosys: Driven by optimistic FY26 guidance.
- Federal Bank: Surged 9% following strong internal updates.
- Tata Steel: Benefitted from a 2.7% jump in the Nifty Metal index earlier in the week.
- Top Losers:
- Eternal (Zomato): Faced selling pressure, ending as one of the day’s notable laggards.
- Larsen & Toubro: Slipped over 3% as investors rotated capital into growth-oriented tech stocks.
- Asian Paints: Faced headwinds amid concerns over rising input costs. Global Backdrop: Trade & Tariffs
The domestic recovery occurred against a backdrop of global caution. Investors are closely watching the U.S. Supreme Court for a ruling on the legality of tariffs imposed by the Trump administration—a decision that could redefine global trade flows for the rest of 2026.
Meanwhile, Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth over ₹4,700 crore earlier in the week. However, Domestic Institutional Investors (DIIs) provided a crucial safety net, pumping in over ₹5,200 crore to stabilize the indices.
The Road Ahead
As the Q3 FY26 earnings season picks up steam, all eyes are now on Reliance Industries and HDFC Bank, both of which are slated to release their quarterly results this weekend. These heavyweights will likely dictate whether the Nifty can break past the immediate resistance zone of 25,950–26,050 in the coming week.
