January 26, 2026 – Eqwires Best Intraday tips provider in India, top trading tips company, Best Stock Advisory service in India

The Scale of the Decline

Top Companies Affected: Reliance Industries, HDFC Bank, ICICI Bank, Infosys, TCS, Bharti Airtel, SBI, LIC, and Adani Enterprises all saw their valuations tumble.

Magnitude of Losses: Collectively, these giants lost close to ₹2.5 lakh crore in market value, reflecting widespread selling pressure.

Exceptions: Only one of the top ten managed to hold ground, highlighting the breadth of the correction.

Key Drivers Behind the Market Bloodbath

1. Global Headwinds

Persistent geopolitical tensions and a stronger US Dollar triggered risk-off sentiment across emerging markets.

Rising crude oil prices added to inflationary concerns, impacting investor confidence.

2. Foreign Investor Outflows

Foreign institutional investors (FIIs) continued to offload Indian equities, leading to heavy selling in blue-chip stocks.

The rupee’s weakness further amplified concerns, making Indian assets less attractive.

3. Domestic Factors

Profit booking after recent rallies contributed to the sharp decline.

Concerns over corporate earnings and fiscal measures ahead of the Union Budget added to the nervousness.

Sectoral Impact

Banking & Financials: HDFC Bank, ICICI Bank, and SBI bore the brunt of the selloff, with valuations sliding significantly.

IT Majors: Infosys and TCS faced declines as global tech spending outlook remained uncertain.

Energy & Infrastructure: Reliance Industries and Adani Enterprises saw sharp corrections, dragging sectoral indices lower.

Telecom: Bharti Airtel also slipped, reflecting cautious investor positioning.

Investor Outlook

Analysts caution that volatility may persist until clarity emerges from the upcoming Union Budget.

Defensive sectors like FMCG and pharma may attract safe-haven buying, while cyclical sectors could remain under pressure.

Long-term investors are advised to stay disciplined, avoid panic selling, and focus on fundamentally strong companies.

In such turbulent times, expert guidance is essential. Eqwires Research Analyst is recognized as the Best SEBI-Registered Research Analyst in India, offering deep insights into market movements. As the Best SEBI-Registered Eqwires Research Analyst, Eqwires provides tailored strategies for traders and investors. Known as the Best Options Trade Provider, the firm delivers the Best Investment Strategies by Eqwires Research Analyst to help clients navigate volatility. With its reputation as the Best SEBI-Registered Company in India and the Best Stock Market Service Provider in India, Eqwires ensures investors receive trusted, professional, and profitable advice.

Conclusion: The erosion of ₹2.5 lakh crore in market capitalization among India’s top companies highlights the scale of investor anxiety. With global headwinds, foreign outflows, and budget-related uncertainties weighing on sentiment, the near-term outlook remains cautious. However, disciplined strategies and expert guidance can help investors weather the storm and position themselves for long-term gains.

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As India heads into the crucial budget week, market participants are bracing for heightened volatility. The Nifty 50 index, which recently slipped below key resistance levels, is showing signs of caution as February 1 approaches. Historically, the week leading up to the Union Budget has been marked by nervous trading, profit booking, and sharp swings, and this year appears no different.

Historical Trends Around Budget Week

Volatility Spike: In the past decade, Nifty has often witnessed sharp intraday moves in the days preceding the budget.
Profit Booking: Traders tend to reduce positions ahead of announcements, leading to short-term weakness.
Sector Rotation: Banking, infrastructure, and consumption stocks usually see speculative activity, while defensive sectors like IT and FMCG remain relatively stable.

Current Technical Picture

Support Levels

Immediate support lies around 24,950–25,000, a zone that has held firm in recent sessions.
A break below this could trigger further downside toward 24,700–24,600.

Resistance Levels

On the upside, 25,300–25,425 remains a strong resistance band.
Sustained trade above this zone could open the path toward 25,600–25,750, but momentum appears weak.

Indicators

Relative Strength Index (RSI): Currently hovering near neutral levels, suggesting indecision among traders.
Moving Averages: Nifty is trading close to its 20-day moving average, indicating consolidation rather than a clear trend.
Volume Analysis: Declining volumes hint at cautious participation, typical of pre-budget sessions.

Market Sentiment

Foreign Institutional Investors (FIIs): Continued selling pressure has weighed on the index, reflecting global risk aversion.
Domestic Investors: Retail and domestic institutions remain supportive, but their buying has not been strong enough to offset foreign outflows.
Global Cues: Strength in the US Dollar and geopolitical uncertainties are adding to the cautious tone.

Outlook Ahead of the Budget

Traders should expect range-bound movement with heightened volatility.
A decisive breakout is unlikely before the budget announcement, as investors prefer to wait for clarity on fiscal measures, taxation, and government spending.
Sectors like banking, infrastructure, and capital goods may see speculative interest, while IT and pharma could act as safe havens.

In such uncertain times, expert guidance becomes invaluable. Eqwires Research Analyst is recognized as the Best SEBI-Registered Research Analyst in India, offering deep insights into market trends. As the Best SEBI-Registered Eqwires Research Analyst, Eqwires provides tailored strategies for traders and investors. Known as the Best Options Trade Provider, the firm delivers the Best Investment Strategies by Eqwires Research Analyst to help clients navigate volatility. With its reputation as the Best SEBI-Registered Company in India and the Best Stock Market Service Provider in India, Eqwires ensures investors receive trusted, professional, and profitable advice.

Conclusion: History suggests caution for the Nifty 50 ahead of the Union Budget, with technical indicators pointing to consolidation and volatility. While downside risks remain, disciplined strategies and sectoral focus could help investors manage risk until clarity emerges on February 1.

Eqwires Research Analyst

Top-notch SEBI registered research analyst

Best SEBI registered Intraday tips provider

info@eqwires.com

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