Mumbai, January 22, 2026, 16:16 IST — After-hours
- Sensex climbed 0.49%, while Nifty 50 edged up 0.53%, ending a three-day slide.
- After hitting a record low the day before, the rupee closed at 91.63 per dollar.
- Dr Reddy’s jumped 5.2%, while Eternal dropped 2.7% amid ongoing worries about quick-commerce.
Indian stocks bounced back Thursday, ending a three-day skid after U.S. President Donald Trump eased off tariff threats against Europe and dismissed any military action over Greenland. The Nifty 50 (.NSEI) climbed 0.53% to 25,289.90, while the Sensex (.BSESN) gained 0.49% to 82,307.37. Gaurav Garg from Lemonn Markets Desk noted the move was driven by short-covering, as traders closed out bearish positions. Dr Reddy’s jumped 5.2%, but Zomato-parent Eternal slipped 2.7%. Despite the rebound, the indexes remain down 3.3% for January.
The rebound follows two tough sessions that slammed both indexes to fresh three-month lows on Wednesday, after Tuesday’s sharpest drop in over eight months. Deven Choksey, managing director at DRChoksey FinServ, pointed to a “wave of global turbulence” driving investors to de-risk, even as domestic fundamentals remain stable. According to the report, foreign investors have offloaded $3.23 billion of Indian shares in January, after selling a record $19 billion in 2025. Reuters
Overseas flows are pushing the tape, but a rebound in stocks hasn’t been reliable without the currency calming and importers easing their dollar demand. Thursday’s action was key—it checked if investors would actually take on more risk or simply close shorts and pull back.
The rupee snapped a six-day losing streak, closing at 91.63 per dollar, stronger than the previous session and off Wednesday’s record low of 91.7425. Traders noted a familiar pattern—recoveries haven’t stuck—since steady importer demand kept the dollar supported. Dipti Chitale, CEO of Mecklai Financial Services, said Trump’s comments eased fears of a wider U.S.-Europe tariff clash, but delays in a U.S.-India trade deal are hurting exporters facing 50% tariffs.
Behind the scenes, the Reserve Bank of India has executed over $2 billion in dollar/rupee buy-sell swaps during the last two days, according to four bankers. These FX swaps involve exchanging dollars now with a commitment to reverse the trade later, effectively pumping rupees back into the banking system. Meanwhile, cash conditions tightened, slipping into a deficit of about 60 billion rupees on Wednesday, the report said.
Dr Reddy’s grabbed attention after announcing approval from India’s drug regulator to produce and sell a generic version of Novo Nordisk’s Ozempic. The company aims to sell 12 million injectable semaglutide pens in its first year, CEO M V Ramana said on a media call. It is still waiting for approval on the obesity drug Wegovy. The semaglutide patent expires in March 2026, setting the stage for fierce competition among Indian generics as Novo and Eli Lilly ramp up their presence in India.
Food-delivery and quick-commerce player Eternal, formerly known as Zomato, surrendered early gains as investors grew wary about Blinkit’s margin prospects amid rising competition. Rahul Jain of Dolat Capital called the results solid but noted concerns that profitability might be tough to maintain; the company warned growth could pressure margins. Datum Intelligence data for 2025 shows Blinkit holding a 48% market share, outpacing Swiggy’s Instamart and Zepto.
Export-sensitive sectors and other high-beta plays reacted sharply to the trade headlines, following a day when the same news pushed local investors toward defensiveness. This back-and-forth has turned January into a story driven as much by currency swings and geopolitics as by earnings.
The rally stalled near the close as benchmarks failed to hold onto early gains, despite mid-caps outperforming. Nilesh Jain from Centrum Broking said the Nifty needs a clear break above its 100-day moving average—around 25,590—to confirm momentum. The 200-day average, near 25,130, remains crucial support. Investors are now turning to U.S. GDP and core inflation figures due later Thursday, along with the Bank of Japan’s policy decision on Friday, for fresh direction, the report said.
In India, attention turns to the Union Budget on Feb. 1. Despite it falling on a Sunday, the country’s exchanges have lined up a special live trading session. According to a National Stock Exchange circular, the pre-open window will run from 09:00 to 09:08 IST, with regular hours following from 09:15 to 15:30 IST.
