Mumbai, January 19, 2026, 15:41 IST
- Sensex falls 0.39%, with Nifty 50 slipping 0.42% following lackluster heavyweight earnings
- Reliance, ICICI Bank, and HDFC Bank top the list of decliners; Wipro slips after issuing a weak March-quarter forecast
- Fresh U.S. tariff threat linked to Greenland fuels risk-off sentiment amid ongoing foreign selling
Indian shares slipped on Monday, weighed down by Reliance Industries, ICICI Bank, and HDFC Bank after their quarterly earnings. Adding to the pressure, new U.S. tariff threats targeting Greenland hit market sentiment. The BSE Sensex dropped 324.17 points, or 0.39%, closing at 83,246.18, while the NSE Nifty 50 declined 0.42% to 25,585.5. “Markets are expected to remain in a consolidation zone,” said Vinod Nair, head of research at Geojit Investments. 1
The drop hits at a tricky time—earnings season—when a handful of big names can sway the entire market. “In index-heavy markets, a few mega-caps can make earnings feel like a macro event,” noted a Finimize market report. 2
Early trading saw 14 of 16 major sectors slip as Reliance and ICICI Bank dropped following quarterly profit misses; ICICI pointed to higher provisions — funds earmarked for possible loan losses — after a regulatory review. Wipro fell on a softer March-quarter revenue forecast, while Tech Mahindra jumped 3.3% after beating third-quarter revenue estimates. RBL Bank slid 7.1% after failing to meet forecasts. “Mixed earnings … have kept markets in a cautious zone,” noted Prashanth Tapse of Mehta Equities. Foreign portfolio investors have offloaded around $2.5 billion in January, following a record $19 billion outflow in 2025, data revealed. 3
Reliance reported a profit of 186.45 billion rupees ($2.06 billion) for October-December, falling short of the LSEG average estimate of 196.44 billion, Reuters noted. Core margins in its retail segment dropped to 8% from 8.6% a year earlier, hit by festive discounting, investments in hyper-local delivery startups, and a one-time effect from India’s new labour code. UBS analysts cut their forecasts but highlighted a shift in the earnings mix toward digital and retail, easing Reliance’s reliance on the volatile oil and gas business. 4
Wipro dropped nearly 10% after forecasting fourth-quarter revenue to be flat or rise just 2% sequentially, alongside $3.34 billion in deal bookings — its lowest tally in six quarters. Morgan Stanley downgraded the stock to “underweight” and cut its price target to 242 rupees, citing weaker growth visibility compared to peers Tata Consultancy Services and Infosys. Analysts at Jefferies pointed to slower project ramp-ups and weaker bookings as reasons behind the cautious stance. 5
Trump announced on Truth Social that starting Feb. 1, an extra 10% import tariff will hit goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Great Britain. That rate jumps to 25% on June 1 and stays until Washington can purchase Greenland. Carsten Brzeski, ING Research’s global head of macro, advised caution: “Just ignore it and wait and see.” 6
Pre-market signals suggested a sluggish open, with GIFT Nifty—an offshore futures tied to the Nifty 50—hovering near 25,592, according to a TradingView report referencing Moneycontrol. The report highlighted global factors influencing the market ahead of the session. 7
Selling intensified briefly, pushing the Sensex down nearly 700 points, or 0.80%, while the Nifty 50 slipped to 25,494.35. Mint reported that foreign institutional investors have offloaded more than 22,000 crore rupees in January alone. “We don’t know now how President Trump’s disruptive policies are going to impact international trade and global economic growth,” said V.K. Vijayakumar, chief investment strategist at Geojit Investments. He added that Europe’s retaliation is “almost certain” if the proposed tariff hikes go ahead. 8
Tariffs could still shift or ease amid talks, and Indian stocks often bounce back once a frightening headline fades. Yet if trade restrictions tighten and earnings continue to disappoint, foreign investors might hold back for a while — leaving the market’s heavyweights little cover.
As earnings season moves forward, traders are zeroing in on a tight group of heavyweights, particularly in IT and banking, watching their guidance closely. The next wave of market moves will hinge on further corporate reports and any new cues from Washington and Europe.
