Mumbai, January 23, 2026, 16:22 IST — Market closed
- Nifty 50 ended down 0.95%, while Sensex slipped 0.94% by the close
- Rupee plunged to a new record low as foreign outflows remained under scrutiny
- Traders are now eyeing the Jan. 27 reopen and the Feb. 1 federal budget
Indian shares slipped almost 1% on Friday, with the Nifty 50 wrapping up at 25,048.65 and the Sensex at 81,537.70. The selling pressure that’s been dragging markets through January showed no signs of easing ahead of the weekend. 1
The slide kept benchmarks on pace for a weekly drop amid a rapidly weakening rupee and ongoing foreign risk-off moves. The rupee touched 92 per dollar before settling at 91.94, down 0.34% on the day and off 1.18% for the week, Reuters reported. “The rupee stays under pressure regardless of broader cues,” said Kunal Kurani, vice president at Mecklai Financial Services. 2
Equities and the currency are now tracking each other more closely than traders prefer. With the stock market closed Monday for Republic Day, investors face a longer pause for fresh risk cues. When trading resumes Tuesday, it will have to digest the weekend’s news all at once. 3
Investors flagged foreign portfolio outflows and uneven earnings throughout the session, despite some domestic funds picking up bargains on dips. “Large investors remain cautious amid ongoing foreign fund withdrawals,” noted Dharmesh Kant, head of equity research at Cholamandalam Securities. 4
Adani group shares came under fresh pressure after the U.S. SEC asked a court to bypass the Indian government and directly email summons to Gautam Adani and another executive, Reuters reported. Adani Enterprises slid as much as 9.1% intraday. The group called the allegations “baseless” and vowed to explore legal remedies. 5
Macro data wasn’t the issue. India’s private-sector activity accelerated in January, with HSBC’s flash composite PMI climbing to 59.5 from 57.8; anything above 50 means expansion. “After losing some momentum at the end of 2025, new orders rose more rapidly – led by a faster pick up in domestic orders,” said Pranjul Bhandari, chief India economist at HSBC. 6
Traders noted that solid data doesn’t guarantee a rally in equities, especially with the currency weakening and steady selling abroad. Caution has crept into positioning ahead of the federal budget set for Feb. 1, adding to the hesitancy.
Technicians watched closely to see if the Nifty could swiftly reclaim 25,300, potentially triggering short-covering. On the downside, a clear break below 25,000 might drag the index down to 24,800, said Nilesh Jain of Centrum Broking. 7
A major risk lies in the rupee’s moves becoming self-reinforcing: as importers hedge more and exporters hold back selling, daily swings could intensify—even if the Reserve Bank of India steps in. A fresh spike in crude oil prices would only add fuel to the fire.
The focus now shifts to the Jan. 27 reopening following the Republic Day holiday, keeping an eye on the rupee hovering near 92 per dollar and if foreign portfolio investors continue offloading ahead of month-end. But the key date remains Feb. 1, when the government unveils its budget—traders will be dissecting spending plans and fiscal cues for the year ahead.
