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Informist, Tuesday, Jan. 20, 2026

 

By Arundathi A R

 

MUMBAI – Benchmark equity indices are expected to remain weak amid trade tensions between the US and Europe. Analysts expect the market to fall more Wednesday. They expect the December quarter earnings and the Budget for 2026–27 (Apr-Mar) to decide market sentiments going forward.

 

The US Supreme Court is set to announce its rulings on several high-profile cases on Jan. 20, including the tariffs imposed by US President Donald Trump, according to a CNBC-TV18 report.

 

"The market is largely dominated by geopolitical events at this point in time, but not by corporate earnings," Asutosh Mishra, head of research at Ashika Stock Broking, said. He sees defence as the only sector to be bullish due to the rise in commodity prices. According to him, the December quarter earnings are neither good nor bad.

 

On Tuesday, the Nifty 50 ended 1.4% lower at 25232.50 points, down 353 points. The BSE Sensex ended the session at 82180.47 points, down 1065.71 points, or 1.3%. Analysts peg resistance for the Nifty 50 at 25400–25500 points and support at 25200–25100 points. 

 

Fitch Ratings expects stable credit metrics for companies rated by it in FY27, as higher revenue and wider earnings before interest, tax, depreciation, and amortisation margins offset higher capital expenditure intensity. The aggregate revenue of companies rated by the agency is expected to rise by 6% in FY27, driven by steady GDP growth and an improved consumer-spending outlook, Fitch Ratings said in a report.

 

On the earnings front, hospitality company ITC Hotels reported a consolidated net profit of INR 2.35 billion, up over 9% on year for the latest quarter. It posted an over 21% rise in its consolidated revenue for the quarter at INR 12.31 billion.

 

Newgen Software Technologies reported an over 23% on-quarter fall in its consolidated net profit for the December quarter to INR 628 million. The bottom line was impacted by a one-time cost of INR 351 million due to the new labour codes. Excluding the one-time cost, the consolidated net profit was INR 979.13 million.

 

Hindustan Zinc is expected to benefit from favourable commodity prices, which are expected to sufficiently offset the impact of lower silver volume in the near term as it continues to operate in the zinc and lead segments, according to a report by Systematix Institutional Equities. The company reported a net profit of INR 38.79 billion for the quarter, up nearly 47% on year, with revenue rising 28% on year to INR 109.22 billion. 

 

The artificial intelligence-led productivity initiatives for large clients are expected to continue affecting LTIMindtree's near-term growth, Motilal Oswal Financial Services said. However, as four out of five clients of the company have completed their productivity programmes, the impact seems to be moderating and the transition phase should be manageable, the brokerage said. 

 

Meanwhile, Nomura said the government does not need to focus on counter-cyclical measures in the Budget for FY27. The government should instead focus on medium-term strategic policies, Sonal Varma, managing director and chief economist, India and Asia ex-Japan, at Nomura Singapore Ltd., which is part of the Nomura Group, told Informist in an interview.

 

According to a Budget preview note by HSBC Global Investment Research, the government is expected to meet its FY26 fiscal deficit target of 4.4% of GDP. The brokerage expects this to be supported by increased non-tax revenue. It also projected a fiscal deficit of 4.2% of GDP in FY27. "A slew of reform steps and a neutral fiscal impulse are likely to be the hallmark of the Budget season," it said.

 

Market participants will keep an eye on the December quarter earnings of pharmaceutical major Dr. Reddy's Laboratories, scheduled for Wednesday. Eternal will also announce its Oct-Dec earnings on Wednesday.  End

 

Edited by Saji George Titus

 

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