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Informist, Friday, Jan. 23, 2026

 

By Arundathi A R

 

MUMBAI – Indian equities are likely to remain under pressure in the near-term as tariff-related uncertainties and ongoing selling by foreign investors continue to dampen sentiment, analysts said. However, market participants hope the Union Budget for 2026–27 (Apr-Mar), scheduled on Feb. 1, will provide cues for a trend reversal in the market while they assess December quarter earnings of major Nifty 50 constituents -- Shriram Finance, Cipla, and JSW Steel--announced Friday. 

 

"Some changes in capital gains tax are expected out of the upcoming Union Budget, especially to stem the flow of foreign investors' selling," Jayesh Mehta, chief executive officer of Mehta Vakil & Co., said. He also sees the government to be more aggressive on capital spending in the railway sector.

 

"Fiscal deficit is projected at 4.4% of GDP, with emphasis on job creation, rural demand, and sustainable development to propel India toward a $5 trillion economy," Rahul Sharma, director and head of technical and derivative research at JM Financial Services Ltd., said in a Union Budget outlook note. 

 

Mehta expects the returns for the Nifty 50 in 2026 to match with the growth of the Nifty 50 companies and is seeing it at 10%, similar to 2025. However, he was disappointed with the December quarter earnings released so far.  

 

On Friday, the Nifty 50 settled almost 1% lower at 25048.65 points, or 241.25 points, lower from the previous close. The BSE Sensex ended at 81537.70 points, down 769.67 points, or 0.9%. Analysts expect the Nifty 50 to find resistance at 25300–25400 points and support at 24900–24800 points.

 

Shriram Finance posted a net profit of INR 25.22 billion for the December quarter, down over 29% on year. Adjusted to the exceptional item reported in the year-ago quarter, the company's net profit grew 21% on year. This was marginally higher than the analysts' view of INR 25 billion. 

 

Pharmaceutical major Cipla reported a 57% on-year fall in its consolidated net profit to INR 6.76 billion for the December quarter. This was markedly lower than the Street estimate of INR 12.42 billion. The company's revenue for the quarter was largely unchanged on year to INR 70.74 billion but below the Street estimates of INR 74.65 billion. The stock closed 4% lower.

 

JSW Steel reported its consolidated net profit for the December quarter at INR 21.39 billion, around three times the INR 7.17 billion reported in the corresponding quarter a year ago. This was also higher than the Street's estimate of INR 14.09 billion. Its revenue for the quarter was INR 459.91 billion, higher than INR 445.11 billion estimated. 

 

Market participants will focus on the December quarter earnings of the two Nifty 50 constituents, UltraTech Cement and Kotak Mahindra Bank, scheduled on Saturday. Kotak Mahindra Bank was expected to report moderate growth in its net profit for the December quarter as the fall in yield on advances outpaces the fall in cost of deposits. Meanwhile, UltraTech Cement is expected to report a sharp year-on-year increase in its top line and bottom line for the December quarter.  End

 

Edited by Deepshikha Bhardwaj

 

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