On Tuesday, January 13, 2026, Indian equity markets experienced a volatile trading session that ultimately ended on a negative note. After opening with optimism in response to positive global cues and some technical buying, both the Sensex and the Nifty initially climbed. Early in the day, benchmark indices were trading comfortably higher, with the Sensex up by more than 200 points and the Nifty above the 25,800 mark. This positive start reflected traders’ hopes of range-bound trading amid the start of the corporate earnings season and improved sentiment from a brief rally seen in the previous session.
However, the early enthusiasm did not last. As the session progressed, the markets began to lose momentum, and selling pressure emerged across key sectors. Heavyweight stocks, including major industrial and technology firms, came under pressure, dragging index values down. Profit-taking by investors was noticeable, especially after sharp early gains, and the broader market turned risk-averse. Throughout the second half of trading, defensive sentiment grew stronger, and the indexes continued sliding from their intraday highs.
By the close of the session, market sentiment had weakened substantially. The Sensex ended the day lower by around 250 points, and the Nifty slipped below the 25,750 level. The number of stocks declining outnumbered the gainers, illustrating broad participation in the sell-off. While some pockets such as parts of the banking segment showed relative resilience, they were not sufficient to counterbalance the widespread weakness in sectors like autos, consumer goods, pharmaceuticals, and realty.
A significant factor that influenced market behavior was the lingering concern over global geopolitical developments and trade policy uncertainty. In particular, renewed talk of potential tariff measures by a major economy that could affect global trade dampened investor confidence. This external risk element, coupled with domestic profit-booking, pushed sentiment toward a risk-off stance during the latter part of the session.
"The markets on Tuesday witnessed sharp intraday volatility on weekly expiry, with early gains giving way to profit booking as the session progressed. The initial optimism was tempered by global tariff-related concerns, mixed reactions to Q3 earnings, and the usual expiry-driven swings. Despite the pullback, the Nifty managed to hold above key support zones, following the strong bullish recovery candle formed in the previous session," said R Ponmudi, CEO, Enrich Money.
The way the markets played out on Tuesday highlighted the fragility of investor confidence at current levels. Even after recent attempts at recovery, bouts of volatility persisted, and benchmarks struggled to sustain early gains. The sharp intraday reversal from a strong opening pointed to underlying caution among traders, who remained sensitive to external cues and wary of extending positions without clearer direction.
For market participants, this close underscored the importance of global developments and earnings outcomes in shaping near-term trends. The inability of benchmarks to hold onto early strength suggested that short-term trading could remain choppy, with investors likely to monitor key support levels and upcoming corporate results for clues on future direction.
Overall, the trading day ended with a palpable sense of uncertainty among investors, as markets closed lower after a promising start, reflecting both external risk factors and domestic profit-booking pressures that outweighed early optimism.