India Stocks Outlook
To see selling pressure; Nifty 50 Q3 results in focus
This story was originally published at 18:15 IST on 22 January 2026
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By Arundathi A R
MUMBAI – Analysts don't expect the current upside movement in the market to sustain in the coming days after the benchmark indices snapped a three-day losing run Thursday. They expect a sell-on-rise to take place with higher volatility. The indices gained after US President Donald Trump made positive statements about the India-US trade deal. Addressing the World Economic Forum in Davos, Trump also ruled out using force to seize Greenland. The upcoming Union Budget for 2026–27 (Apr-Mar) and the December quarter earnings are likely to provide near-term direction for the market.
"Trump's announcement has led to a pause in the downward move that we have been witnessing, but not sufficient to change the broader trend, where we can see an upward movement," Ruchit Jain, head of technical research at Motilal Oswal, said. Jain said he is not expecting any sustainable move higher until the Nifty 50 crosses 25500.
Analysts are also not expecting any major trigger in the near term which will lead the 50-stock index to hit a lifetime high. The index is over 1000 points away from its all-time high of 26373.2, hit on Jan. 5. On Thursday, the Nifty 50 settled 0.5% higher at 25289.90 points, or 132.40 points higher from the previous close. The BSE Sensex ended at 82307.37 points, up 397.74 points, or 0.5%. Analysts expect the Nifty 50 to find resistance at 25500 points and support at 25000–24800 points.
Analysts expect the Budget to be the next trigger that will drive a major market movement. "As India moves into its next phase of economic growth, strengthening household financial security must become a central priority of the Union Budget FY27," Sumit Madan, managing director and chief executive officer at Axis Max Life Insurance Ltd., said in a note.
On specific stocks, Motilal Oswal Financial Services has reduced Dr.Reddy's Laboratories' FY26 earnings estimates by 4% to factor in the delay in Semaglutide launch in Canada and raised the FY27 earnings estimates by 6% on hopes of better growth prospects in India, Europe, and Russia. The brokerage has cut its target price for Dr.Reddy's to INR 1,220. Nirmal Bang Institutional Equities sees a steadily progressing biosimilars pipeline positioning the company to absorb near-term margin impact and cut the stock's target price marginally.
Emkay Global Financial Services has cut Eternal's target price by 14% to INR 370 as it expects slower margin expansion for the company in FY27 and FY28 amid heightened competition in the quick-commerce business. Blinkit achieved profitability earlier than expected, but at the cost of growth, the brokerage said in a report. The brokerage has retained its 'buy' recommendation on the stock.
On the earnings front, InterGlobe Aviation reported net profit of INR 6.13 billion for the December quarter. This was way lower than the Street view of INR 16.47 billion. The company's bottom line fell sharply on year because of operational chaos in the first part of December, which forced it to cancel hundreds of flights per day. The newly introduced Labour Codes also weighed on InterGlobe's net profit.
Market participants will focus on the December quarter earnings of three Nifty 50 companies, Cipla, JSW Steel, and Shriram Finance, scheduled for Friday. Analysts expect Cipla to report weak earnings for the quarter due to continued pricing erosion and loss of market for some key generic products in the US.
Shriram Finance is likely to report a double-digit rise in net profit for the December quarter, driven by growth in assets under management and expansion of the net interest margin. JSW Steel is expected to report a sharp year-on-year increase in net profit in the December quarter, driven by capacity expansion. End
Edited by Saji George Titus
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