Key gauges end lower amid widespread sell-off

Indian equity benchmarks resumed their downward journey and ended with losses of around a percent on Friday, dragged by widespread sell-off and the rupee depreciating to hit a record low against the US dollar. Also, unabated foreign capital outflows in the absence of domestic triggers added to the gloom.

Some of the important factors in trade:

Business activity in India’s private sector accelerates in January: India’s flash Purchasing Managers’ Index (PMI) data report has showed that business activity in the country’s private sector bounced back sharply in January 2026, after losing some momentum at the end of the 2025 calendar year. 

India unlikely to suffer much even if US imposes higher tariffs: Amid concerns over US’ tariff on Indian exports, Union Minister of State (Mos) for External Affairs Kirti Vardhan Singh has said India is unlikely to suffer much even if the US imposes higher tariffs, as the strength of the Indian economy has now been realised globally, including by US President Donald Trump. 

Gold-loan NBFCs may cross Rs 4 lakh crore AUM by FY27: Crisil Ratings’ report said that Assets under management (AUM) of NBFCs specialising in gold loans are expected to grow at a CAGR of around 40 per cent between the current and next fiscal year, surpassing Rs 4 lakh crore by March 2027.

Stronger India-EU relationship can stabilise global order: With volatility and instability becoming the new normal in current state of the world, the External Affairs Minister S Jaishankar has emphasized on a stronger India-European Union (EU) relationship to stabilise the global order through stronger trade, mobility and security partnership.  

Global front: European markets were trading mostly in green as data released by S&P Global showed the HCOB Flash Germany Composite PMI rose to 52.5 in January 2026, its highest level in three months, up from 51.3 in December and well above expectations of 51.6. Asian markets ended mostly higher after U.S. stocks rose for a second consecutive session overnight on easing geopolitical and trade tensions between the United States and Europe. 

Finally, the BSE Sensex fell 769.67 points or 0.94% to 81,537.70 and the CNX Nifty was down by 241.25 points or 0.95% to 25,048.65.   

The BSE Sensex touched high and low of 82,516.27 and 81,471.82 respectively. There were 7 stocks advancing against 23 stocks declining on the index.        

The broader indices ended in red; the BSE Mid cap index fell 1.56%, while Small cap index was down by 2.19%.

The top losing sectoral indices on the BSE were Utilities down by 3.52%, Realty down by 3.35%, Power down by 2.81%, Capital Goods down by 2.09% and Consumer Discretionary down by 1.78%, while there were no gaining sectoral indices on the BSE. 

The top gainers on the Sensex were Hindustan Unilever up by 0.92%, Tech Mahindra up by 0.79%, Infosys up by 0.44%, Asian Paints up by 0.33% and TCS up by 0.30%. On the flip side, Adani Ports &SEZ down by 7.52%, Eternal down by 6.29%, Interglobe Aviation down by 4.27%, Axis Bank down by 2.72% and Bajaj Finserv down by 2.26% were the top losers.

Meanwhile, the European Union (EU) has suspended export benefits under its Generalised Scheme of Preferences (GSP) to sectors like textiles and plastics, for some countries, including India, effective from January 1, 2025. The commerce ministry has said that this decision will not have any impact on the country's exports to the 27-nation bloc, as from 2016, the EU has progressively suspended GSP tariff preferences for India across products, such as minerals, chemicals and textiles. This was further widened in 2019 and 2023.  

The ministry said the same list was extended as per regulations released on December 1, 2025. From January 1, 2026, GSP preferential duties will be suspended for the same list of products until December 31, 2028. As a result of this phased product level graduation, for 2024-25, about 47 per cent of India's exports to the EU, valued at $35.6 billion, are currently outside the scope of the GSP, with only 53 per cent ($40.20 billion) remaining eligible for the benefits. 

The development is important as the India and EU are likely to announce the closure of negotiations for a free trade agreement (FTA) on January 27, 2026. According to the Official Journal of the European Union, the European Commission on September 25, 2025, laid down rules for the application of the regulation with regard to the suspension for 2026-2028 of certain tariff preferences granted to certain GSP beneficiary countries - India, Indonesia and Kenya. It shall apply from January 1, 2026 until December 31, 2028.  

CNX Nifty touched high and low of 25,347.95 and 25,025.30 respectively. There were 13 stocks advancing against 37 stocks declining on the index.    

The top gainers on Nifty were Dr. Reddy's Lab up by 1.72%, ONGC up by 0.86%, Tech Mahindra up by 0.79%, Hindalco up by 0.69% and Hindustan Unilever up by 0.64%. On the flip side, Adani Enterprises down by 10.76%, Adani Ports &SEZ down by 7.02%, Eternal down by 5.74%, Interglobe Aviation down by 3.95% and Jio Financial Services down by 3.58% were the top losers.

European markets were trading mostly in green; UK’s FTSE 100 increased 1.46 points or 0.01% to 10,151.51 and Germany’s DAX gained 36.53 points or 0.15% to 24,893.00, while France’s CAC fell 43.29 points or 0.53% to 8,105.60.

Asian markets ended mostly higher on Friday tracking Wall Street’s gains overnight on relief over US President Donald Trump's U-turn on Greenland. Chinese Shanghai Composite rose after Xiaomi announced a stock buyback program worth up to HK$2.5 billion ($321 million). Seoul shares ended up, led by brokerage and technology shares. The Japan’s Nikkei gained while the yen lagged after the Bank of Japan held its policy rate steady at 0.75%, as widely expected, but signalled that it was likely to continue raising interest rates in 2026.