Equities Slide to 10-Week Lows as Earnings Misses, Trade Worries Dent Sentiment

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

India stocks fall, rupee fall

By Dehuti Jani

January 19, 2026 at 11:36 AM IST

Indian equity benchmarks closed lower on Monday, extending recent weakness as disappointing quarterly results from heavyweight companies and renewed fears of a global trade war weighed on investor sentiment. The NSE Nifty50 slipped 0.42% to 25,585.50, while the BSE Sensex fell 0.39% to 83,246.18, both ending at their lowest closing levels in around ten weeks. Losses were led by index heavyweights, with Reliance Industries tumbling about 3% and ICICI Bank down over 2% after both missed quarterly earnings expectations, dragging overall market mood.

Sectorally, pressure was visible across rate-sensitive and cyclical pockets. The Nifty Realty index dropped 1.99%, Nifty Oil & Gas declined 1.56%, and Nifty Media fell 1.84%. In contrast, defensive segments offered limited support, with Nifty FMCG rising 0.67% and Nifty Auto edging up 0.13%. Broader markets also remained weak, as the Nifty Midcap 100 slipped 0.37% and the Nifty Smallcap index fell 0.99%, indicating broad-based caution. Sentiment stayed fragile amid global uncertainty after US President Donald Trump threatened fresh tariffs on European countries, reinforcing a risk-off bias as investors remained selective ahead of further earnings cues.

Top Movers of the Day

Bank of India hit an eight-year high of ₹163.25, rising 4% on the BSE amid heavy volumes in an otherwise weak market.

Reliance Industries slid 3.6% to an intraday low of ₹1,406.30 after muted Q3FY26 earnings, with consolidated net profit up just 0.6% YoY at ₹18,645 crore.

Bharat Heavy Electricals (BHEL) shares declined despite reporting higher Q3FY26 profit, after the company announced a short closure of its new Varanasi plant.

Hindustan Zinc gained 4% to ₹662.60 on the BSE ahead of its Q3FY26 earnings announcement.

Welspun Corp rose over 5% after its board approved the acquisition of a 2.57% stake in Welspun Mauritius Holdings for up to $5.96 million to streamline overseas operations.

Mangalore Refinery and Petrochemicals dropped nearly 5% after the company said it has stopped importing and processing Russian crude oil.

RBL Bank tumbled up to 8.5% after Q3 profit missed street estimates, with the stock trading around 7.3% lower in late morning trade.

Netweb Technologies jumped nearly 11% to a two-month high after its Q3FY26 net profit more than doubled.

CG Power and Industrial Solutions surged over 8% after securing a ₹9 billion order from a US-based firm for supplying power transformers for a data centre project.

Tata Motors Passenger Vehicles slipped 4% to ₹338.50 amid concerns over fresh US tariffs on the EU and UK, trading close to its 52-week low.

Bharat Coking Coal made a strong debut, listing at ₹45, a 95.65% premium to its issue price of ₹23, before paring gains to hit an intraday low of ₹40.22.

Futures & Options
Nifty January 2026 futures closed at 25,574, trading at a discount of 11.5 points to the Nifty 50’s cash close of 25,585.50, reflecting cautious sentiment amid continued pressure in the underlying market.. Volatility ticked higher, with the India VIX rising 4% to 11.83, signalling elevated near-term uncertainty. HDFC Bank, ICICI Bank and Reliance Industries dominated trading volumes in the F&O segment, while January 2026 contracts are set to expire on January 27.

Bonds
Government bond yields rose on Monday, extending last week’s sell-off as global cues dominated domestic supply comfort. The benchmark 10-year yield ended at 6.6842%, up from 6.6767% on Friday, as traders tracked a sharp rise in US Treasury yields and stayed cautious despite lower-than-scheduled state debt supply for the week. Sentiment was weighed down by the move in global rates, with the US 10-year Treasury yield climbing to 4.2310%, its highest level in over four months, prompting investors to demand higher yields on domestic sovereign debt as well.

Forex
The rupee reversed early gains and fell for a fourth consecutive session on Monday, pressured by sustained corporate dollar demand and a shortfall in supply. The local unit initially found support as the dollar weakened against major peers and Asian currencies, with investors paring dollar exposure amid rising tensions over Greenland and renewed US tariff threats on European nations. The rupee briefly appreciated to 90.6450 before reversing course and closing at 90.91 per dollar, its weakest finish since December 16, compared with 90.8650 on Friday.

Crypto
Crypto markets turned sharply risk-off, with Bitcoin drifting toward the $92,000 level and Ethereum sliding below $3,200, as sentiment deteriorated rapidly amid heavy liquidations. Nearly $800 billion worth of leveraged long positions were wiped out, marking one of the largest liquidation events of the year, as elevated futures positioning amplified the sell-off. The pressure intensified after former US President Donald Trump announced 10% tariffs on eight European countries linked to Greenland, reviving global trade-war fears and raising concerns of potential EU retaliation estimated at up to $100 billion.

US Stock Futures
US stock futures fell on Monday amid thin, holiday-shortened trading after President Donald Trump threatened to impose additional tariffs on eight European nations unless the US is allowed to buy Greenland, reviving trade tensions and denting risk appetite. With US equity and bond markets closed for the holiday today, low liquidity amplified moves, sending S&P 500 futures down around 0.9% and Nasdaq futures lower by about 1.1%.

US Treasury Notes
US Treasury yields are holding near multi-month highs on Monday, , even as domestic cash trading is closed for the Martin Luther King Jr. Day holiday. In global electronic trading, the benchmark 10-year yield hovered around 4.23%, its highest level since September, supported by resilient economic data and rising political uncertainty around the Federal Reserve. Yields climbed sharply late last week after reports of a criminal probe involving Fed Chair Jerome Powell and growing speculation over potential successors, prompting investors to demand a higher risk premium on long-dated debt.

Top News