Indian equity benchmarks extended their losing streak to a fifth consecutive session on Friday, January 9, closing deep in the red. Persistent foreign fund outflows, looming concerns over potential US tariffs, and caution ahead of the corporate earnings season combined to dampen investor sentiment significantly.
Market Plunge: A Detailed Look at the Numbers
The Sensex tumbled 605 points, or 0.72%, to settle at 83,576.24. The broader Nifty 50 index fell 194 points, or 0.75%, closing at 25,683.30. The selling pressure was not confined to large caps; broader markets suffered even more. The BSE Midcap index declined by 0.90%, while the Smallcap index witnessed a sharper tumble of 1.74%.
Over the course of this five-session sell-off, the cumulative damage has been substantial. The Sensex has shed approximately 2,186 points, translating to a drop of about 2.5%. The Nifty 50 mirrored this decline, also recording a 2.5% fall over the same period.
"Markets witnessed a sharp sell-off during the week, with benchmark indices ending firmly in the red amid weak global cues and heightened uncertainty," noted Ajit Mishra, SVP of Research at Religare Broking. He added that the Sensex declined 2.55% and the Nifty fell 2.45% for the week, marking one of the steepest weekly declines in recent months.
Key Triggers for the Stock Market Next Week
The focus now shifts decisively to the upcoming third-quarter (Q3) earnings season, which is set to kick off in earnest. According to Ponmudi R, CEO of Enrich Money, heavyweight Information Technology companies will take centre stage and are likely to drive index-level direction.
Major IT firms like TCS, Infosys, HCL Tech, Wipro, and Tech Mahindra are scheduled to report their December quarter results. Collectively, these companies account for nearly 13% of the Nifty's weight, making their performance and, more importantly, their management commentary critical for broader market sentiment.
Ponmudi highlighted that investors will scrutinize post-results guidance for clues on client IT budgets, signs of recovery in discretionary spending, and hiring plans. Updates on the progress in AI-led technologies will also be a key area to watch. Beyond IT, Reliance Industries Ltd's results will be another major trigger due to its significant index weight. Trends in its energy, retail, and telecom businesses will be closely monitored.
Macro Data and Global Events in the Spotlight
The coming week is also heavy with macroeconomic data releases from India. Key figures such as Consumer Price Index (CPI) inflation, Wholesale Price Index (WPI) inflation, trade balance, and foreign exchange reserves are due to be announced, providing fresh cues on the domestic economic health.
On the global front, a significant development is awaited from the United States. The US Supreme Court is scheduled to deliver its next set of decisions on January 14. Among the high-profile cases awaiting a verdict is a legal challenge to former President Donald Trump's broad global tariff measures. The court did not rule on this case on January 9, keeping markets on edge. Trump has defended these tariffs, warning that overturning them would deal a "terrible blow" to the US economy.
These factors—corporate earnings, domestic inflation data, and the US tariff ruling—are expected to be the primary drivers of market movement in the week ahead, as investors look for direction after a period of sustained selling.
