The Indian stock market is poised for a cautious beginning to the trading week on Monday, January 12, with indicators pointing towards a flat to marginally positive opening. This tentative sentiment comes despite supportive cues from other Asian markets and ongoing developments in the US-Iran geopolitical conflict.
Market Sentiment and Friday's Performance
Early signals from the Gift Nifty futures suggested a largely subdued start, with the index trading at 25,809.50, marking a slight dip of about 7.5 points or 0.1% from its previous close. This follows a weak closing in the previous session where the benchmark indices extended their losing streak.
On Friday, both the Sensex and Nifty 50 indices closed lower for the fifth consecutive session. The sell-off was driven by a combination of renewed concerns over potential US tariffs, a defensive mood ahead of the third-quarter corporate earnings season, and persistent outflows of foreign institutional investor (FII) funds. The BSE Sensex dropped 605 points, or 0.72%, to end at 83,576.24. Similarly, the Nifty 50 declined by 194 points, or 0.75%, to settle at 25,683.30.
The pressure was not limited to the large-cap indices. Broader market segments also faced significant selling, with the BSE Midcap index falling 0.90% and the Smallcap index witnessing a sharper decline of 1.74%.
Expert Insight on Market Trajectory
Commenting on the market outlook, Ponmudi R, CEO of Enrich Money, stated that Indian equities are starting the week on a guarded note. He attributed this to restrained risk appetite stemming from lingering global uncertainties, continued FII outflows, and geopolitical overhangs. Recent profit-booking across various sectors has added to the near-term pressure, keeping overall market sentiment defensive.
He further added, "Volatility is expected to remain elevated, particularly during early trade, with any pullback rallies likely to be short-lived. The broader market trajectory over the coming sessions will be guided by global developments and upcoming inflation data, which could influence near-term positioning."
Stocks to Watch in Today's Session
Against this backdrop, several stocks are likely to see heightened activity and investor interest during Monday's trading session.
Tata Consultancy Services (TCS), HCL Technologies, and Anand Rathi Wealth will be in the spotlight as these companies are scheduled to announce their Q3 FY26 financial results today.
NTPC has entered into a significant shareholder agreement with Maharashtra State Power Generation Company (MAHAGENCO) to acquire STPL in a deal valued at ₹3,800 crore. This move strengthens NTPC's presence in the thermal power segment.
Mahindra & Mahindra (M&M) reported a robust business update for December, showing a 27% year-on-year surge in total sales volumes to 85,501 units. The company's production also increased by 25.4% during the same period.
Avenue Supermarts (DMart) announced its Q3 FY26 results, posting an 18.3% year-on-year rise in consolidated profit after tax to ₹855.92 crore, compared to ₹723.72 crore in the same quarter last year.
Reliance Industries Ltd (RIL) Chairman Mukesh Ambani outlined five concrete commitments at the Vibrant Gujarat Regional Conference, emphasizing the group's focus on advancing India's clean energy agenda and broader developmental objectives.
Indian Renewable Energy Development Agency Ltd (IREDA) reported strong quarterly results on Friday, January 9. The state-run entity's net profit for Q3 FY26 jumped 37.5% year-on-year to ₹584.9 crore, up from ₹425.4 crore a year earlier.
Spandana Sphoorty Financial disclosed on January 10 that its board is considering a proposal to merge its subsidiary, Criss Financial Ltd, with the parent company.
Lemon Tree Hotels is in focus as Coastal Cedar Investment BV, an affiliate of Warburg Pincus, is set to acquire the entire 41.09% equity stake in its subsidiary Fleur Hotels from APG Strategic Real Estate Pool NV.
Akzo Nobel India Limited announced several changes to its board and senior management following a board meeting held on Friday.
Vedanta Ltd received approval from the National Company Law Tribunal (NCLT) in Mumbai for its Scheme of Arrangement involving Vedanta Aluminium, Talwandi Sabo Power, Malco Energy, and Vedanta Iron and Steel.
Investors are advised to monitor these developments closely as they navigate a market environment characterized by caution and selective stock-specific actions.
