The Indian equity markets ended Thursday, January 22, on a positive note, as benchmark indices extended gains amid selective buying in defence and frontline stocks. Improved global sentiment and easing geopolitical tensions helped investors regain confidence, even as foreign institutional investors (FIIs) remained net sellers during the previous session. Strong participation from domestic institutional investors (DIIs) played a crucial role in keeping the market firmly in the green.
Both SENSEX and NIFTY50 posted steady gains through the day, supported by earnings-driven stock-specific action across large-cap, midcap, and smallcap segments. Defence stocks, pharma names, and select PSU banks outperformed, while some consumption and insurance stocks witnessed mild profit booking.
Market overview: Benchmarks close higher
The BSE Sensex opened strong and climbed as much as 873 points during early trade, touching an intraday high of 82,783.18. Buying interest remained intact through most of the session, although gains were trimmed slightly towards the close. The Sensex finally settled at 82,307.37, up 397.73 points or 0.49 percent.
Similarly, the Nifty 50 index scaled an intraday high of 25,435.75 before closing at 25,289.90, registering a gain of 132.40 points or 0.53 percent. Broader market indices also outperformed the benchmarks, indicating healthy market breadth and improving risk appetite among investors.
Exchange data showed that FIIs sold equities worth ₹1,787.66 crore on Wednesday, while DIIs stepped in with net purchases of ₹4,520.47 crore, effectively cushioning the market from external selling pressure.
NIFTY 50: Top gainers and losers
The Nifty 50 pack was led by Dr. Reddy’s Laboratories, which surged over 5 percent after announcing its Q3FY26 earnings. Although the pharma major reported a 14.4 percent year-on-year decline in consolidated net profit to ₹1,209.8 crore, the figure exceeded Street expectations. Analysts had anticipated a sharper decline, and the earnings beat triggered strong buying interest in the stock.
Another prominent gainer was Bharat Electronics, which rose nearly 4 percent, benefiting from sustained optimism around defence sector prospects. Shares of Adani Enterprises, Adani Ports and Special Economic Zone, and Tata Motors’ passenger vehicle arm also featured among the top performers, reflecting broad-based buying in infrastructure and auto-related stocks.
On the downside, Eternal slipped close to 3 percent despite reporting strong quarterly results. The stock had rallied sharply in early trade, hitting a fresh high, but profit booking at higher levels dragged it into the red by the close. The company posted a robust 72.88 percent jump in consolidated net profit to ₹102 crore for the December FY26 quarter, driven by strong growth in its quick commerce business.
Other Nifty 50 losers included SBI Life Insurance Company, Eicher Motors, Titan Company, and Max Healthcare Institute, which declined modestly amid sector-specific pressures and valuation concerns.
NIFTY Midcap 100: Strong outperformance
Midcap stocks delivered an impressive performance, with the NIFTY Midcap 100 index jumping 1.34 percent to close at 58,191.30. The rally was broad-based, supported by strong earnings announcements and optimism around domestic growth.
The standout performer was Waaree Energies, which soared nearly 10 percent. The renewable energy major reported a stellar 118 percent year-on-year jump in net profit to ₹1,106 crore for the quarter, backed by equally strong revenue growth. Operational efficiency and higher module production significantly boosted investor confidence in the stock.
Banking and auto ancillaries also saw solid buying interest. Indian Bank, Sona BLW Precision Forgings, Bank of India, and Ashok Leyland were among the other notable gainers, each posting gains of over 5 percent during the session.
However, not all midcaps participated in the rally. Stocks such as Kalyan Jewellers India, Swiggy, Tata Communications, KEI Industries, and Jubilant Foodworks ended lower, weighed down by profit booking and stock-specific concerns.
NIFTY Smallcap 100: Mixed trend
The smallcap segment recorded moderate gains, with the NIFTY Smallcap 100 index rising 0.76 percent to close at 16,677.25. Buying interest was selective, with investors focusing on fundamentally strong names and avoiding overleveraged stocks.
Top gainers in the smallcap space included CreditAccess Grameen, Radico Khaitan, Trident, Tata Chemicals, and PCBL Chemical. These stocks benefited from improved sentiment, better-than-expected earnings, or sectoral tailwinds.
On the flip side, significant declines were seen in IIFL Finance, which plunged over 15 percent, followed by PNB Housing Finance, Hindustan Copper, Jindal Saw, and Devyani International. Concerns around financial performance, asset quality, and valuation pressures contributed to the sharp sell-off in these counters.
What investors should watch next
The January 22 session highlighted the importance of earnings-driven stock selection in the current market environment. While benchmark indices are trending higher, volatility remains due to global cues, interest rate expectations, and institutional flows. Defence, renewable energy, and select banking stocks continue to attract interest, whereas consumer-facing and financial stocks may remain sensitive to earnings and guidance.
Going forward, investors are likely to track upcoming quarterly results, macroeconomic data, and global market trends to assess the sustainability of the ongoing rally. A disciplined, research-driven approach remains key, especially in the midcap and smallcap segments where price swings can be sharper.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult a qualified financial advisor before making any investment decisions.