Domestic equity benchmarks ended the week on major losses, with all trading sessions closing in the red, as investors grappled with a confluence of global and domestic headwinds. Sentiment was dampened by escalating geopolitical tensions following U.S. military action in Venezuela, renewed concerns over potential U.S. tariffs, and persistent foreign institutional investor outflows. Adding to the volatility was a mixed set of Q3 earnings and business updates, which failed to provide clear directional cues. As a result, investors remained cautious, leading to broad-based selling and extended losses across the week.
In the week ended on Friday, 09 January 2025, the S&P BSE Sensex dropped 2,185.77 points or 2.55% to settle at 83,576.24. The Nifty 50 index plunged 645.25 points or 2.45% to settle at 25,683.30. The BSE Mid-Cap index fell 2.59% to close at 46,304.80. The BSE Small-Cap index tumbled 3.86% at 49,912.11.
Weekly Index Movement:
Domestic equity market ended marginally lower on Monday after a choppy session. The S&P BSE Sensex tanked 322.39 points or 0.38% to 85,439.62. The Nifty 50 index dropped 78.25 points or 0.30% to 26,250.30.
Frontline equity benchmarks ended lower for a second straight session on Tuesday as risk sentiment weakened across markets. The S&P BSE Sensex declined 376.28 points or 0.44% to 85,063.34. The Nifty 50 index dropped 71.60 points or 0.27% to 26,178.70. In two consecutive trading sessions, the Sensex declined 0.81% while the Nifty fell 0.56%.
Domestic equity benchmarks ended lower on Wednesday, extending losses for a third consecutive session. The S&P BSE Sensex declined 120.20 points or 0.12% to 84,961.14. The Nifty 50 index dropped 37.95 points or 0.14% to 26,140.75. In three consecutive sessions, the Sensex declined 0.93% while the Nifty fell 0.71%.
Bears clawed deeper into Dalal Street as equity benchmarks slid for a fourth straight session on Thursday, with relentless selling. The S&P BSE Sensex tumbled 780.18 points or 0.92% to 84,180.96. The Nifty 50 index dropped 263.90 points or 1.01% to 25,876.85. In four consecutive trading sessions, the Sensex declined 1.84% while the Nifty fell 1.71%.
The key equity benchmarks ended with major losses on Friday, extending losses for a fifth straight session. The S&P BSE Sensex tumbled 604.72 points or 0.72% to 83,576.24. The Nifty 50 index dropped 193.55 points or 0.75% to 25,683.30. In five consecutive trading sessions, the Sensex declined 2.54% while the Nifty fell 2.45%.
US and Venezuela Situation:
The U.S. launched a military operation in Venezuela over the weekend, resulting in the arrest of Venezuelan President Nicolas Maduro and his wife, Cilia Flores. The couple is set to appear before a New York court on drug-related charges. President Donald Trump stated that the U.S. is now in control of Venezuela and warned of potential further military action. The UN Security Council is scheduled to meet today to discuss the U.S. intervention, which UN Secretary-General Antonio Guterres called a dangerous precedent.
Economy:
India’s foreign exchange reserves increased by $3.29 billion to $696.61 billion in the week ended December 26, 2025, according to the Reserve Bank of India’s Weekly Statistical Supplement released on January 2.
Foreign currency assets (FCAs), the largest component of the reserves, stood at $559.61 billion, registering a marginal weekly increase of $184 million, the data showed.
Gold reserves increased sharply by $2.96 billion during the week to $113.32 billion, contributing the most to the overall rise in reserves.
India’s Special Drawing Rights (SDRs) with the International Monetary Fund rose by $60 million to $18.80 billion. The country’s reserve position in the IMF increased by $93 million to $4.88 billion as of December 26.
India’s services sector growth slowed in December, with the HSBC India Services PMI Business Activity Index easing to 58.0 from 59.8 in November, marking the weakest expansion since January while still indicating solid growth. The Composite PMI Output Index also softened to 57.8 from 59.7 in November but remained well above its long-run average, pointing to continued overall economic expansion at a moderated pace.
Stocks in Spotlight:
Reliance Industries dropped 7.35%. Despite the company strongly denying reports that Russian Urals crude shipments were headed to its Jamnagar refinery. Reliance said it has not received any Russian crude for nearly three weeks and expects none in January, reiterating that it halted the use of Russian oil at its export-oriented unit in November 2025 amid rising geopolitical and regulatory risks, including US tariff threats under Donald Trump. The company also flagged inaccuracies in vessel tracking data and said it is shifting to diversified, non-Russian crude sourcing to avoid sanctions risks and maintain access to global markets.
Trent fell 9.82%. The company’s Q3 FY26 business update showed steady but slowing momentum. While standalone revenue rose 17% YoY to Rs 5,220 crore and nine-month revenue increased 18% YoY, investors were concerned about flat sequential growth and a moderation compared with the stronger growth seen in recent quarters.
HDFC Bank slipped 6.24%. Despite reporting double-digit loan growth in the December quarter. While advances rose 12% YoY and deposits grew 11.5%, investor concerns centred on the loan-deposit ratio, which increased to nearly 99%, well above management’s near-term target of below 90%. The elevated ratio has renewed worries over deposit constraints and raised questions about the bank’s ability to sustain above-industry growth in the coming financial year.
Titan Company rallied 3.62%. The company’s domestic consumer businesses recorded around 40% year-on-year growth in Q3 FY26, with jewellery emerging as the biggest contributor. The jewellery portfolio posted about 41% YoY growth, supported by strong wedding and festive demand and improved performance across gold studded jewellery and gold coins.
IndusInd Bank slipped 2.41%. The bank reported a 3.8% decline in deposits to Rs 3,94,022 crore as of 31st December 2025 compared with Rs 4,09,438 crore as of 31st December 2024.
Larsen & Toubro (L&T) declined 3.27%. The company said it has received a supply order from the Corps of Electronics and Mechanical Engineers (EME) of the Indian Army for overhaul, upgrade, and obsolescence management of the indigenous Pinaka Multi-Rocket Launcher Systems.
GM Breweries plunged 10.48%. The company reported a 91.22% surge in standalone net profit of Rs 42.01 crore in Q3 FY26, compared to Rs 21.97 crore posted in Q3 FY25. Revenue from operations (excluding excise duty) increased 21.89% YoY to Rs 202.14 crore for the quarter ended 31 December 2025.
KSH International lost 4.99%. The company’s consolidated net profit surged 129.02% to Rs 29.59 crore on a 50.73% increase in revenue from operations to Rs 712.14 crore in Q2 FY26 over Q2 FY25.
Kalyan Jewellers India added 2.12%. The company’s consolidated revenue climbed approximately 42% YoY, driven by robust festive demand, strong same-store sales growth (SSSG), and sharp traction in its digital platform, Candere.
JSW Steel slipped 1.77%. The company recorded consolidated steel production of 7.48 million tonnes in Q3 FY26, marking a 6% year-on-year (YoY) increase compared with 7.03 million tonnes in Q3 FY25.
AVG Logistics shed 0.39%. The company announced a strategic partnership with Nestlé India and Ashok Leyland to develop a green supply chain corridor. Under the partnership, AVG Logistics will deploy 50 CNG powered trucks to service Nestlé India, creating a dedicated green corridor aimed at improving efficiency while lowering environmental impact. The company said the fleet is expected to cover around 2.75 lakh kilometres per month and reduce carbon emissions by about 1.1 lakh kg of CO₂ annually.
Global Markets:
The Eurozone inflation stood at 2% in December, according to flash data from Eurostat, easing from 2.1% in November and aligning with the European Central Bank’s (ECB) target.
Core inflation, which excludes volatile components such as energy, food, alcohol, and tobacco, moderated to 2.3% in December from 2.4% in the previous month. Services inflation also cooled, easing to 3.4% from 3.5% in November.
The ECB kept its key deposit facility rate unchanged at 2% in December, extending its pause for a fourth consecutive meeting, after last cutting rates in June.
Germany’s unemployment rate remained unchanged at 6.3% in December 2025, according to data released Wednesday by the Federal Employment Agency.
China’s consumer prices rose 0.8% year-on-year, according to data from the National Bureau of Statistics, following a 0.7% increase in November.
U.S. authorities reportedly said that Maduro and his wife, Cilia Flores, were flown to New York following the operation and charged with narco-terrorism conspiracy and other crimes.
U.S. President Donald Trump said he would put Venezuela under temporary American control and that he could order another strike if the South American nation does not cooperate with U.S. efforts to open up its oil industry and stop drug trafficking. He also threatened military action in Colombia and Mexico.
US President Donald Trump has discussed a range of options, including potential military measures, to acquire Greenland, with the White House describing the move as a national security priority.
Meanwhile U.S. President Donald Trump said that Venezuela would transfer between 30 million and 50 million barrels of oil to the United States. The remarks followed a weekend operation in which U.S. forces seized former leader Nicolás Maduro.