Equity Benchmarks Edge up on IT-Led Gains, Week Ends Flat Amid Tariff Woes

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

istock

Indian shares rise

By Dehuti Jani

January 16, 2026 at 11:42 AM IST

Indian equity benchmarks inched higher on Friday, ending the week largely flat as strong earnings from IT majors and buying in state-owned banks provided support, while uncertainty around a potential US trade deal and persistent foreign fund outflows capped upside. The Nifty50 rose 0.11% to 25,694.35 and the Sensex added 0.23% to 83,570.35. For the week, the Nifty eked out a marginal 0.04% gain, while the Sensex slipped 0.01%. Broader markets outperformed, with mid-cap and small-cap indices rising 0.2% and 0.5%, respectively.

Markets were buoyed by a sharp rally in IT stocks after Infosys posted stronger-than-expected quarterly results and raised its full-year revenue growth guidance, lifting sentiment across the technology space. Banking, financials and PSU banks also saw steady buying, while metals and realty added to gains. FMCG remained rangebound, and select defensives and healthcare stocks lagged, reflecting a mildly risk-on tone. On the Sensex, Infosys, Tech Mahindra and HCLTech led gains, while Eternal, Asian Paints and Maruti were among the top drags. On the NSE, Wipro outperformed, while Cipla, Jio Financial and Eternal weighed on the index.

Top Movers of the Day

Infosys shares surged after reporting stronger-than-expected Q3 results and raising its full-year revenue growth forecast, which lifted the broader IT index and spurred buying across tech counters.

Groww (Billionbrains Garage Ventures) saw its stock rally around 9% on heavy volumes, extending gains from earlier sessions as investor interest remained strong.

LTIMindtree jumped over 5% after securing a significant AI-related project from the Central Board of Direct Taxes, driving broad enthusiasm in tech names.

Wipro shares climbed about 3% ahead of its Q3 results, reflecting positive sentiment on expected earnings and investor optimism around margin and deal momentum.

Zen Technologies gained nearly 10% as the defence tech firm won a ₹404-crore order from the Ministry of Defence, marking its highest price in recent weeks.

Univastu India shares surged close to 19% after the company received a work order from Larsen & Toubro for Mumbai Metro projects, triggering strong buying.

Amagi Media Labs IPO action was in focus as its subscription window closed, though investor response was muted compared to recent issues.

Futures & Options
Nifty January 2026 futures settled at 25,749.40, trading at a premium of 55.05 points to the Nifty’s cash close of 25,694.35, indicating modest positive rollover sentiment despite muted spot gains. The NSE’s India VIX edged up 0.46% to 11.37, reflecting slightly elevated near-term uncertainty ahead of earnings and global cues. Infosys, HDFC Bank and Reliance Industries were the most actively traded stock futures on the NSE, pointing to continued participation in heavyweight counters. The January 2025 F&O contracts are set to expire on 27 January 2026.

Bonds
Government bond yields higher on Friday as traders stayed cautious ahead of fresh weekly supply and amid concerns that the Reserve Bank of India’s bond purchases remain skewed towards less-liquid papers. The benchmark 10-year yield ended at 6.6767%, up from 6.6498% on Wednesday. The RBI raised ₹310 billion through two long-term government bonds in its latest auction, with strong demand and no devolvement. Despite this, yields remained high due to supply concerns, even as the RBI plans to buy ₹500 billion in bonds next week after purchasing ₹2.5 trillion last month.

Forex
The rupee logged its sharpest one-day fall in nearly two months on Friday, pressured by strong dollar demand from importers and the unwinding of maturing positions in the non-deliverable forwards market. Intermittent dollar sales by state-run banks, likely on behalf of the RBI, helped curb deeper losses. The rupee closed at 90.8650 per dollar, down 0.6% on the day, its steepest drop since mid-November and edged closer to its all-time low of 91.0750 seen in December. On a weekly basis, the currency weakened about 0.7%.

Crypto
Crypto markets capitalisation hovered around $3.32 trillion, with Bitcoin continuing to dictate overall market direction. Bitcoin eased in Asian trade on Friday, trimming recent gains after US lawmakers delayed a key bill aimed at establishing a regulatory framework for digital assets. Bitcoin had climbed as high as $96,000 earlier this week, but the rally proved short-lived amid muted risk appetite, with Bitcoin last down 0.5% at $95,808.5. Ethereum, however, remained resilient, extending its strong start to 2026 and holding firmly above the $3,300 level as fresh buying interest supported prices.

US Stock Futures
US stock futures traded higher on Friday, extending gains after a broad rally in banking and technology stocks lifted Wall Street in the previous session. S&P 500 futures rose about 0.26%–0.28%, Dow Jones futures were up 0.12%, and Nasdaq 100 futures advanced 0.25%–0.46% in early pre-market trade, even as oil prices softened. Renewed optimism about artificial intelligence lifted sentiment, with Nvidia rising 2.1% Thursday after TSMC noted strong demand, calming worries about excessive valuations in AI stocks.

US Treasury Notes
US Treasury yields held steady around 4.17% on Friday, as the market remained locked in an unusually low-volatility phase. The 10-year yield has traded within a narrow 4.1%–4.2% band for nearly five weeks, close to historically long periods of inertia. Short-dated yields edged slightly lower, while longer-dated yields inched higher, resulting in a mild steepening of the yield curve.

Top News