CHENNAI: Indian equity markets ended lower on Monday (January 19) as investors turned cautious amid a mix of disappointing corporate earnings, global risk-off cues and persistent concerns over foreign fund outflows. The benchmarks spent most of the session in negative territory and failed to recover in the second half of the day, reflecting a clear lack of buying appetite at higher levels.
The BSE Sensex closed sharply lower, shedding 324 points by the end of the session, while the NSE Nifty slipped below the 25,600 mark. The sell-off was broad-based, with heavyweights dragging the indices down and market breadth remaining firmly negative, indicating that declines outpaced gains across the board. Volumes were moderate, suggesting investors preferred to stay on the sidelines rather than aggressively add fresh positions.
Banking and financial stocks were among the main drags on the market, as select lenders reacted negatively to quarterly earnings that fell short of expectations. Shares of large private sector banks remained under pressure, contributing significantly to the benchmark losses. Reliance Industries also weighed on sentiment, with investors reacting cautiously to its earnings and outlook. Information technology stocks saw mild selling as well, reflecting concerns about global demand and cautious commentary from managements during the earnings season.
"Bank Nifty opened on a steady note but faced early selling pressure before staging a recovery from the 59,500 zone, which acted as a strong intraday support," says equity and investment advisor, and CEO at Enrich Money, R Ponmudi.
According to him, the rebound was reinforced by the highest Put Open Interest at 59,500, highlighting strong put writers’ defense and buying interest at lower levels.
"Post-recovery, the index moved into a consolidation phase within a rising channel, while upside remained capped near the 60,000 mark. A sustained breakout above 60,200 could open the door for an upside move toward 60,500–60,800 in the near term. On the downside, a decisive breakdown below 59,500 may trigger fresh selling pressure toward 59,200–59,000," he said adding that Bank Nifty continues to show relative resilience compared to the broader market, with option positioning suggesting a well-defined near-term range.
In contrast, defensive pockets such as FMCG showed relative resilience, helping limit deeper losses, though even these sectors saw selective profit-taking after recent gains. Mid-cap and small-cap stocks underperformed the frontline indices, continuing the trend of higher volatility and sharper corrections in the broader market.
From a macro and global perspective, weak cues from overseas markets added to the subdued mood. Renewed worries over trade tensions, uncertainty around the global interest rate trajectory and geopolitical risks led investors to reduce exposure to risk assets. The cautious global backdrop, combined with ongoing foreign institutional investor selling in Indian equities this month, kept sentiment fragile. The rupee also came under mild pressure, reinforcing concerns about capital flows and external headwinds.
Technically, the breach of key short-term support levels on the Nifty has made traders wary, with market participants closely watching whether the index can hold the lower support zone in the coming sessions. Analysts believe the near-term trend remains volatile, and any meaningful recovery will depend on stability in global markets and reassurance from upcoming corporate earnings. At the same time, some market observers view the current decline as a corrective phase rather than a structural breakdown, given that long-term fundamentals remain intact.
Overall, Monday’s session highlighted the nervous tone prevailing on Dalal Street, as investors balanced domestic earnings developments against an uncertain global environment. With the earnings season picking up pace and global cues remaining fluid, markets are likely to stay range-bound and stock-specific in the near term, with caution dominating trading sentiment.