The Nifty mirrored the weakness, slipping below its 200-day moving average and closing near the day’s lows, signalling continued fragility in the broader market structure.
Gaurav Garg,
Lemonn Markets Desk
Mumbai, 23 January 2026: “Indian equity markets closed sharply lower on Friday, paring early gains as persistent FII selling and profit-booking at higher levels kept sentiment under pressure. The Sensex, which opened on a positive note and briefly moved above 82,500, reversed direction through the session to end nearly 1 percent lower. The Nifty mirrored this weakness, slipping below its 200-day moving average and closing near the day’s lows, signalling continued fragility in the broader market structure.
Relentless foreign fund outflows remained the dominant drag, with FIIs extending their selling streak and maintaining a clear sell-on-rallies stance amid concerns over earnings visibility and relatively expensive valuations. Tepid quarterly results from index heavyweights such as ICICI Bank and HCL Technologies further weighed on sentiment, reinforcing worries that a meaningful earnings recovery is still some time away. Rising crude oil prices and a sharply weaker rupee, which hit a fresh record low despite RBI intervention, added to macro concerns around inflation and the trade deficit.
Sectorally, banks and select large caps faced heavy pressure, while Adani Group stocks saw sharp selling following reports of fresh legal developments in the US. Selective strength in pharma and metals provided limited support. Technically, the Nifty’s break below key averages keeps the near-term trend negative, suggesting that any bounce may remain tactical rather than trend-changing.”
