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Informist, Friday, Jan. 16, 2026

 

By Arundathi A R

 

MUMBAI – Analysts expect the market to consolidate in the next week, with sentiment likely to remain weak. They expect some tweaks in the Union Budget for 2026-27 (Apr-Mar), scheduled for Feb. 1, which will give a pause for the foreign investment selling. Uncertainties regarding the India-US trade deal and corporate earnings for the December quarter are likely to give market direction in the near-term, analysts said.

 

"Strong traction and faster negotiations are likely to happen in the trade deal," Vinit Bolinjkar, head of research at Ventura Securities, said. He expects the trade deal to get sealed between the March and June quarters. Bolinjkar said the free-trade agreement between India and the European Union will be a biggest disadvantage for the US, as it remains the only country to have no trade deal with India. India and the European Union are likely to announce the conclusion of talks for the FTA on Jan. 27.

 

On Friday, the Nifty 50 settled at 25694.35 points, up 28.75 points, or 0.1%. The BSE Sensex closed at 83570.35 points, up 187.64 points, or 0.2%. Analysts have pegged resistance for the Nifty 50 at 25835 points and support at 25600–25550 points.

 

"A single-digit growth trend will continue with a marginal improvement in the information technology sector," Bolinjkar of Ventura Securities said. He said the guidance for the major IT companies is not very interesting. 

 

"Valuations are not demanding, this theme (information technology services) has underperformed the broader market in 2025. Any pickup in global tech spending, AI-led (artificial intelligence) or otherwise can unlock upside," asset management company, DSP Asset Managers Pvt. Ltd., said about the sector, in its report.

 

Wipro posted a consolidated net profit of INR 31.19 billion, down almost 4% on quarter and 7% on year, despite its top line growing at its fastest pace in 13 quarters. It reported a consolidated revenue of INR 235.56 billion, up nearly 4% on quarter and a near 6% rise on year. The company's bottom line for the quarter was hit by higher employee benefit expenses, including an INR 3.03 billion impact due to the new labour codes, which came into effect on Nov. 21.

 

Another IT behemoth, Tech Mahindra, reported a consolidated net profit of INR 11.22 billion, down 6% sequentially. Its consolidated revenue was at INR 143.93 billion, up nearly 3% on quarter. Tech Mahindra's December quarter net profit, excluding one-time costs, is INR 13.9 billion.

 

On the earnings front, brokerage Prabhudas Lilladher expects real estate companies to report steady pre-sales for the December quarter, driven by sustenance sales. The brokerage also said new launches are likely to pick up in the coming quarters. It sees pre-sales to grow at a compound annual growth rate of 10-30% over FY25 to FY28. The Nifty Realty index snapped an eight-day losing run, when it shed over 7% during this period.

 

Nirmal Bang Institutional Equities has upgraded Infosys to 'buy' from 'hold' and raised the target price by 11% to INR 1,864. The brokerage is optimistic due to the company's consistent strong performance in revenue growth for the past three quarters and strong growth visibility for 2026-27 (Apr-Mar) with early shoots of discretionary spending in banking, financial services, and insurance segment and the Europe vertical. Infosys ended the session nearly 6% higher and was the top gainer among the Nifty 50 constituents.

 

Global brokerage firm Nuvama has reduced its rating on Cipla to 'reduce' from 'hold' and cut the stock's target price almost 21% to INR 1,360 from INR 1,715 earlier. Cipla's European contract manufacturing organisation partner, Pharmathen, has temporarily paused production of the Lanreotide drug for remediation efforts, and it may restart manufacturing in the first half of 2026-27 (Apr-Mar). Shares of Cipla ended nearly 3% lower at INR 1,397.50 and it was among the major drags in the Nifty 50. 

 

Market participants will have their eyes set on the December quarter earnings of Reliance Industries, due later in the day. ICICI Bank and HDFC Bank will release their December quarter results on Saturday.  End

 

Edited by Deepshikha Bhardwaj

 

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