Stock Markets January 23, 2026

Indian Stock Markets Close Lower Amid Sectoral Declines and Volatility Surge

Nifty 50 Hits Three-Month Low as Real Estate, Power, and Capital Goods Drag Markets

By Priya Menon
Indian Stock Markets Close Lower Amid Sectoral Declines and Volatility Surge

Indian equities ended lower on Friday, with the Nifty 50 index declining nearly 1 percent to mark a three-month low. Losses were led by the Real Estate, Power, and Capital Goods sectors. Major indices including the BSE Sensex followed suit, reflecting broad-based selling. Volatility increased as measured by the India VIX, while certain blue-chip stocks saw modest gains despite the downward trend.

Key Points

  • The Nifty 50 index closed down 0.95%, touching a three-month low, pressured by losses in Real Estate, Power, and Capital Goods sectors.
  • Dr Reddy's Laboratories, Hindalco Industries, and ONGC were among the few gainers, while Adani Enterprises and Adani Ports showed significant declines.
  • Market volatility increased notably with the India VIX reaching a six-month high, reflecting heightened investor uncertainty.

India's stock markets closed lower on Friday, impacted primarily by declines across multiple key sectors. The Nifty 50 index on the National Stock Exchange (NSE) lost 0.95%, settling at a new low for the past three months. Similarly, the Bombay Stock Exchange (BSE) Sensex 30 index fell 0.94%, confirming the downward momentum in major Indian bourses.

The sectors recording the most notable losses were Real Estate, Power, and Capital Goods, which collectively exerted pressure on the broader indices. Market breadth was weak, with declining stocks substantially outnumbering advances on both exchanges. On the NSE, 1,905 shares declined versus 597 advances, with 33 unchanged. The BSE recorded 2,717 decliners against 1,270 advancing stocks, while 140 stocks ended without change.

Among the day's individual stock performers on the NSE, Dr Reddy's Laboratories Ltd delivered the strongest gains, rising by 1.72% or 20.90 points to close at 1,238.40. Other notable gainers included Hindalco Industries Ltd., which advanced 0.77% to finish at 951.75, and Oil and Natural Gas Corporation Ltd, which also edged higher by 0.73% to 245.79 in late trading.

On the downside, Adani Enterprises Ltd posted the sharpest decline, plunging 10.76% or 224.60 points to conclude at 1,861.80, marking a 52-week low. Similarly, Adani Ports and Special Economic Zone Ltd declined 7.02% to 1,314.90, while Eternal Ltd decreased 5.74% to 260.05.

The BSE Sensex's top performers mirrored some NSE trends, with Tech Mahindra Ltd rising 0.71% to 1,700.00, Hindustan Unilever Ltd increasing 0.67% to 2,406.00, and Infosys Ltd gaining 0.35% to close at 1,669.25. Conversely, the biggest fallers included Adani Ports and Special Economic Zone Ltd (-6.95%), Eternal Ltd (-5.82%), and Axis Bank Ltd. (-3.12%).

Market volatility in India surged, as reflected by the India VIX index which measures implied volatility in Nifty 50 options. It rose 7.57% to 14.36, marking a six-month high and indicating increased uncertainty among investors.

In the commodities arena, February gold futures climbed 0.35% (up $17.06), reaching $4,930.46 per troy ounce. For energy markets, crude oil futures for March delivery increased by 1.47%, hitting $60.23 a barrel, while Brent crude gained 1.37%, closing at $64.94 a barrel.

Currency markets showed the Indian rupee weakening slightly against major currencies. The USD/INR pair increased 0.33% to 91.85, while the EUR/INR rose 0.16% to 107.81. The US Dollar Index Futures edged up marginally by 0.01% to 98.19.

Risks

  • Continued pressure in Real Estate, Power, and Capital Goods sectors may extend market declines, affecting industrial and infrastructure-related stocks.
  • Significant drops in key companies such as Adani Enterprises and Adani Ports pose downside risks for market sentiment and sector stability.
  • Rising volatility as indicated by the India VIX suggests potential amplification of market swings, increasing uncertainty for equity investors.

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