Indian Markets Volatile Amid Q3FY26 Results; Sensex, Nifty Trade Range-Bound

Market Update at 12:38 PM: Indian benchmark indices BSE Sensex and NSE Nifty remained volatile on Wednesday as investors turned stock-specific amid the ongoing Q3FY26 results season. Broader market sentiment stayed cautious due to deteriorating geopolitical conditions and ambiguity surrounding the US-India trade deal, restricting any major upside.

As of 12:33 PM on 14 January 2026, the Sensex was trading 0.09 per cent (up 73.55 points) at 83,701.24, while the Nifty 50 was trading 0.12 per cent (up 29.90 points) at 25,762.20.

Within the Nifty 50, UltraTech Cement, Grasim Industries, and Titan Company were among the Top Gainers. In contrast, Tata Consultancy Services, Asian Paints, and Sun Pharmaceutical Industries were among the Top Losers.

In broader markets, the Nifty Midcap 100 and Nifty Smallcap 100 outperformed the benchmarks with gains of 0.3 per cent and 0.76 per cent, respectively.

On the sectoral front, the Nifty Metal index advanced 2.8 per cent, followed by the Nifty Oil and Gas index, which gained 0.37 per cent. On the downside, the Nifty Realty index fell 1 per cent and the Nifty Pharma index declined 0.4 per cent.

Market Update at 10:22 AM: India’s equity markets opened softer on Wednesday as persistent foreign outflows, geopolitical tensions, and elevated crude oil prices overshadowed optimism around steady corporate earnings.

As of 09:21 a.m. IST, the Nifty 50 fell 0.16 per cent to 25,695.5, while the Sensex shed 0.1 per cent to 83,543.71. Among broader indices, Small-Caps and Mid-Caps traded largely flat.

Out of 16 major sectoral indices, ten logged losses in early trade, reflecting cautious investor sentiment. This weakness comes after a sustained decline in benchmarks—both Nifty and Sensex have fallen in six of the past seven sessions, down 2.3 per cent and 2.5 per cent respectively.

Market pressure has been driven by U.S. tariff concerns, escalating geopolitical strains, and foreign outflows totaling USD 2 billion so far in January, following a record USD 19 billion of selling in 2025.

Global sentiment also softened after U.S. President Donald Trump urged Iranian protesters to “take over” institutions, adding that “help is on its way”. The comments pushed demand for safe-haven assets, sending gold to record highs.

Meanwhile, crude oil prices rose more than 2 per cent on Tuesday to a seven-week high on fears of disruptions in Iranian crude supply, outweighing expectations of increased Venezuelan output. Prices later eased 0.4 per cent on the day.

Pre-Market Update at 7:57 AM: Indian benchmark indices Sensex and Nifty 50 are expected to open lower on Wednesday amid weak global cues and geopolitical tensions. Gift Nifty was trading at around 25,757, at a discount of nearly 34 points to the previous Nifty futures close, signalling a soft start for domestic equities.

On Tuesday, markets ended lower as investors booked profits amid continued concerns over U.S. tariffs, sustained foreign outflows and mixed global trends. The Sensex slipped 250.48 points, or 0.30 per cent, to settle at 83,627.69, while the Nifty 50 fell 57.95 points, or 0.22 per cent, to 25,732.30. 

Asian markets traded mixed, with Japanese equities hitting fresh record highs. Japan’s Nikkei 225 gained 1.25 per cent, crossing the 54,000 level for the first time, while the Topix advanced 0.6 per cent. South Korea’s Kospi added 0.44 per cent, whereas the Kosdaq declined 0.37 per cent. Hong Kong’s Hang Seng index futures indicated a positive start.

Gift Nifty hovered near 25,757, at a discount of about 34 points from the previous Nifty futures close, reflecting weak sentiment for Indian markets at the opening bell.

On Wall Street, U.S. markets ended lower overnight, dragged by declines in financial stocks. The Dow Jones Industrial Average dropped 398.21 points, or 0.80 per cent, to 49,191.99, the S&P 500 slipped 13.53 points, or 0.19 per cent, to 6,963.74, while the Nasdaq Composite eased 24.03 points, or 0.10 per cent, to 23,709.87.

U.S. consumer prices rose in December, driven by higher rents and food prices. The Consumer Price Index increased by 0.3 per cent during the month, while annual CPI inflation stood at 2.7 per cent, unchanged from November.

Geopolitical tensions escalated after U.S. President Donald Trump cancelled all meetings with Iranian officials over the country’s crackdown on protests. In a Truth Social post, Trump urged Iranian citizens to continue demonstrations and claimed “help is on its way,” raising global uncertainty.

External Affairs Minister S Jaishankar spoke with U.S. Secretary of State Marco Rubio regarding cooperation in trade, critical minerals, nuclear energy and Defence. Both sides agreed to remain engaged, supporting diplomatic stability despite global tensions.

The World Bank projected India’s GDP growth at 6.5 per cent for FY27, easing from an estimated 7.2 per cent expansion in the current fiscal year, according to its latest Global Economic Prospects report.

The U.S. dollar strengthened to near a one-month high following the CPI print. The U.S. Dollar Index rose 0.3 per cent to 99.18. The dollar was flat at 159.025 yen, the offshore yuan traded flat at 6.9708 per USD, the euro held at USD 1.1642 and the British pound was steady at USD 1.3423.

Gold prices remained elevated near record highs as softer-than-expected US inflation supported expectations of further Federal Reserve rate cuts, while geopolitical risks provided safe-haven demand. Spot gold edged up 0.2 per cent to USD 4,595.53 per ounce and silver rose 0.9 per cent to USD 87.716.

Oil prices steadied after their strongest four-day rally in more than six months. Brent crude rose 2.51 per cent to USD 65.47 per barrel, while U.S. WTI futures dipped 0.10 per cent to USD 61.09 per barrel.

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Disclaimer: The article is for informational purposes only and not investment advice.