Equities Slide as Rupee Hits Record Low Amid Foreign Outflows

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

istock.com/Rasi Bhadramani

By Dehuti Jani

January 23, 2026 at 11:41 AM IST

Indian equity benchmarks ended sharply lower on Friday, pressured by sustained foreign fund outflows, weak earnings momentum and lingering global uncertainty, even as easing geopolitical tensions offered limited relief. The NSE Nifty50 fell 0.95% to 25,048.65, while the BSE Sensex declined 0.94% to 81,537.70, extending the recent corrective phase. Selling was broad-based, with Adani Group stocks, Eternal and IndiGo weighing on sentiment, while the Nifty Midcap 100 and Smallcap 100 slipped 1.8% and 1.95%, respectively.

Adding to the caution, the Indian rupee slid to a fresh all-time low, exacerbating risk aversion across asset classes. The currency touched a record low of 91.9650 per dollar and settled at 91.94, down 0.34% on the day, marking its steepest weekly decline in six months amid persistent foreign outflows and importer hedging demand. Sectorally, metals showed relative resilience, supported by gains in Hindustan Zinc and Nalco, while realty, banking and financial services stocks remained under pressure, underscoring a fragile near-term outlook for domestic markets.

Top Movers of the Day

Cipla slipped 3% after Q3FY26 consolidated net profit fell 57% YoY to ₹676 crore, even as revenue stayed flat at ₹7,074 crore.

Adani Group stocks, Adani Green, Adani Enterprises, Adani Energy and Adani Ports dropped up to 10% after reports said the US SEC sought court approval to serve summons to Gautam Adani and Sagar Adani in an alleged $265 million bribery case.

Eternal extended losses, falling 7% over two sessions and erasing nearly $2 billion in market capitalisation, despite brokerages raising target prices to as high as ₹480.

One97 Communications (Paytm) tumbled 10% to an intraday low of ₹1,134.85, extending its weekly decline to four out of five sessions and hitting its lowest level since October 2025.

Hindustan Petroleum slid nearly 18% from its recent record high, falling to ₹416.45, dragging the stock close to its 200-day moving average.

Bluestone Jewellery and Lifestyle fell 8.9% after the company reported a slowdown in revenue exit growth rate for Q3FY26.

Balaji Wafers was in focus after General Atlantic agreed to acquire a 7% stake for over ₹2,000 crore, valuing the company at around ₹35,000 crore.

Aditya Birla Sun Life AMC pared gains after rising nearly 7%, supported by a 20.07% YoY jump in Q3FY26 profit.

Alivus Life Sciences gained 5.3% after reporting a 9.7% YoY rise in Q3FY26 profit to ₹150.3 crore.

Home First Finance Company advanced over 7% as Q3FY26 profit jumped 44% YoY, prompting positive analyst commentary.

Cyient slipped around 1% after reporting a 28% sequential decline in Q3FY26 profit, with brokerages maintaining a mixed outlook.

Ashok Leyland rose 2.3% to a fresh all-time high of ₹194.75, supported by strong volumes.

Ujjivan Small Finance Bank climbed nearly 7% after posting a 71% YoY jump in Q3FY26 net profit and subsequent target price upgrades by analysts.

Futures & Options
Nifty January 2026 futures closed at 25,080, trading at a premium of 31.35 points to the Nifty 50 cash close of 25,048.65, even as the benchmark index slumped 241.25 points or 0.95% during the session. Market volatility spiked, with the NSE India VIX jumping 6.31% to 14.19, reflecting heightened risk aversion. HDFC Bank, Reliance Industries and ICICI Bank emerged as the most actively traded stock futures in the F&O segment, while the January 2026 derivatives contracts are set to expire on January 27, 2026.

Bonds
Government bond yields edged higher on Friday, snapping a three-session rally, as traders turned cautious ahead of heavy central and state bond supply amid patchy demand. The benchmark 10-year government bond yield ended at 6.6635%, up from 6.6362% on Thursday. At the weekly gilt auction, the government raised ₹330 billion across three securities, with demand remaining adequate but selective. The newly issued 2029 and 2033 papers cleared at yields of 6.03% and 6.68%, respectively, while the 7.24% 2055 bond was cut off at a higher 7.43%, reflecting investor caution at the long end.

Forex
The rupee slid to a fresh record low on Friday and logged its steepest weekly fall in six months, pressured by sustained foreign outflows and strong importer hedging demand. The currency slipped to an all-time low of 91.9650 before settling at 91.94 per dollar, down 0.34% on the day, taking weekly losses to 1.18% and extending the monthly decline to about 2.3%, as dollar demand remained elevated despite easing geopolitical tensions.

Crypto
Bitcoin traded range-bound near the $89,800 level on Friday, as markets awaited a fresh catalyst to determine the next directional move. Over the past 24 hours, Bitcoin slipped 0.08% while Ethereum declined 1.51%, with most major altcoins including BNB, XRP, Solana, Dogecoin and Cardano down up to 2%. In contrast, Tron and Hyperliquid bucked the trend, gaining 2.85% and 0.11%, respectively, reflecting selective buying amid subdued overall sentiment.

US Stock Futures
US stock futures edged lower on Friday after two consecutive sessions of gains, as investors turned cautious amid fading momentum following President Donald Trump’s decision to dial down rhetoric around US sovereignty over Greenland. Futures on the Dow Jones Industrial Average slipped about 0.2%, while S&P 500 futures were also down 0.2%. Nasdaq 100 futures underperformed, easing 0.4%, as some profit-taking emerged in technology stocks after the recent rebound.

US Treasury Notes
US Treasury yields were largely steady on Friday, with the benchmark 10-year yield hovering around 4.23-4.24% as investors weighed resilient US economic data against easing geopolitical concerns. Yields had touched a five-month high earlier in the week amid renewed US–Europe trade tensions linked to the Greenland issue but stabilised after a framework agreement helped calm markets.

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