Bengaluru, Jan 16, 2026, 16:18 (IST) — The market has closed.
- Nifty 50 ended 0.11% higher at 25,694.35, while the Sensex climbed 0.23% to settle at 83,570.35.
- Infosys surged 5.6%, propelling the IT index up 3.3% for the session.
- The rupee fell 0.6% to 90.8650 per dollar, marking its steepest single-day decline in almost two months.
Indian shares edged up on Friday, boosted by tech stocks following Infosys’ upgraded revenue forecast. Still, the main indexes wrapped the week mostly unchanged.
The Nifty 50 edged up 0.11% to 25,694.35, with the Sensex climbing 0.23% to 83,570.35. Over the week, the Nifty inched higher by 0.04%, while the Sensex slipped 0.01%.
The mix is crucial now as investors lean on early earnings clues to gauge if corporate demand is holding steady, despite ongoing global trade jitters and foreign outflows dampening risk appetite.
“Markets won’t likely pick a clear direction unless geopolitical tensions cool down or a trade deal with the U.S. becomes clear,” said Pankaj Pandey, head of retail research at ICICI Securities. Reuters
IT stocks drove sector gains as the Nifty IT index surged 3.3%. Infosys climbed 5.6%, marking its largest one-day jump in eight months, following an upgrade to its fiscal 2026 revenue forecast.
Morningstar highlighted vendor consolidation and a growing AI toolkit as drivers behind deal momentum, noting, “Infosys is in a better competitive position… due to its comprehensive AI offerings.” The company reported its order book for deals over $50 million reached $4.8 billion. Following the results, brokerages such as Jefferies boosted their target prices. Reuters
New earnings updates shaped the IT sector’s mood. Wipro posted third-quarter revenue that exceeded expectations, despite a profit drop and weaker deal bookings; it forecasted flat to 2% growth in the upcoming quarter. Tech Mahindra also outpaced revenue predictions but fell short on profit, weighed down by a one-off cost tied to new labor code rules.
State-owned banks saw solid weekly gains outside the IT sector, with metal stocks climbing thanks to rising global metal prices and supply concerns, providing some support to the broader market.
Foreign investors have offloaded $2.1 billion worth of Indian equities this January, a selling pressure traders find tough to overlook given the market’s proximity to recent peaks. Meanwhile, the markets regulator proposed allowing large foreign investors to “net” trades, aiming to reduce settlement costs. Reuters
The rupee slipped further, closing at 90.8650 per dollar, down 0.6% on the day. Traders pointed to importer demand and offshore forward settlements as drivers, while state-run banks appeared to offload dollars, probably on behalf of the central bank.
“The depreciation pressure on the INR is likely here to stay, especially in the absence of an India-US trade deal,” ANZ analysts said, as India posted a December merchandise trade deficit of $25.04 billion. Reuters
The risk is clear: if trade talks stall, the dollar remains strong, and foreign investors keep selling, the market’s earnings rally could falter fast. A weaker rupee might squeeze financial conditions in certain areas, even if stocks stay resilient.
Monday brings earnings from giant Reliance Industries and banks HDFC Bank and ICICI Bank, with investors also digesting the first full reaction to Wipro’s report.
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