Mumbai, Jan 26, 2026, 16:15 IST — Market closed
- Indian stock exchanges will be closed Monday in observance of Republic Day, reopening for trading on Tuesday.
- Nifty 50 closed at 25,048.65, slipping 0.95% on the day and dropping 2.5% over the week; Sensex finished at 81,537.70.
- Traders are focused on tariff cues, new earnings reports, and the upcoming Feb. 1 Union Budget schedule.
Indian stock markets remained shut Monday for Republic Day, leaving investors sidelined following last week’s steep selloff. Equity and derivatives trading will pick up again on Tuesday. 1
The Nifty 50 closed Friday down 0.95% at 25,048.65, marking its sharpest weekly decline in nearly four months. The Sensex also slipped 0.94% to settle at 81,537.70. Broader indices fell even more, dragged lower by a selloff in Adani group shares after a U.S. regulator requested court approval to serve summons personally in a case involving alleged fraud and a $265 million bribery scheme. “Markets are struggling to find their footing amid heightened uncertainty,” said Aishvarya Dadheech, founder and chief investment officer at Fident Asset Management. 2
That dip counts as we enter a packed week loaded with mixed signals. Trade news has resurfaced, earnings keep rolling in, and investors are bracing for the Union Budget, set to drop in just a few days.
U.S. Treasury Secretary Scott Bessent suggested that the additional 25% tariff on India’s imports of Russian crude might be rolled back, following a steep decline in those imports. “I would imagine there is a path to take them off,” Bessent told Politico, though the tariffs are still in effect for now. 3
Another trade story hits autos: India is set to slash tariffs on certain EU car imports to 40%, down from as steep as 110%, according to sources familiar with the talks shared with Reuters. The cut excludes battery electric vehicles for the first five years, a move likely to keep homegrown EV players like Mahindra & Mahindra and Tata Motors under the spotlight. 4
Bank earnings might set the tone as markets reopen. Axis Bank posted a 3% jump in standalone profit for the December quarter, hitting 64.90 billion rupees ($709 million). This was driven by loan growth and a sharp sequential fall in provisions for bad loans. Net interest income (NII), the difference between interest earned on loans and paid on deposits, rose 5% to 142.87 billion rupees, though margins slipped. 5
Adani shares could remain volatile. A panel appointed by the Bangladesh government claimed an Adani Power coal plant supplying electricity there charged above market prices and shifted Indian corporate taxes onto Bangladesh. The company, however, said it wasn’t consulted and urged Dhaka to settle outstanding payments. 6
Budget expectations continue to weigh on sentiment, especially following the recent downturn. Economists surveyed by Reuters expect the fiscal deficit to narrow to 4.2% of GDP next year, down from a projected 4.4% this year. But some caution that slower revenue growth after tax cuts will tighten spending room. “There will be some cuts in expenditure to meet the shortfall in revenue… there is no other option,” said Anitha Rangan, chief economist at RBL Bank. 7
Overseas markets aren’t settling down either. Gold surged past $5,000 an ounce for the first time, and oil inched up. Investors are bracing for the U.S. Federal Reserve’s policy meeting later this week — a scenario that usually dampens risk appetite for emerging-market stocks. 8
A relief bounce on Tuesday isn’t assured. Foreign selling remains a vulnerability, and new tariff shocks or a tougher Fed stance could push traders to head for the exits again.
The calendar stands out: the National Stock Exchange plans a live trading session on Sunday, Feb. 1, coinciding with the Union Budget presentation. The market will open normally from 0915 to 1530 local time, following a brief pre-open session. 9
Tuesday’s reopening will draw attention to tariff discussions, how banks digest Axis’ earnings, and shifts in budget stance. Offshore, the Fed’s meeting on Jan. 27–28 could shape risk sentiment far beyond Wall Street. 10
