Indian equities enter the late-January week under pronounced volatility and mixed global cues. Domestic benchmarks endured deep corrections mid-week, with persistent foreign institutional investor (FII) outflows and a weakening rupee denting sentiment, even as occasional value buying surfaced. While the broader market struggled, key defensive and sectoral themes provided intermittent support.
Globally, the easing of geopolitical tensions, particularly softened tariff rhetoric from the U.S., helped rebound risk assets in Asia and supported a recovery in select Indian stocks later in the week. However, uncertainty around trade policies and mixed earnings reports kept investors cautious.
With the Union Budget looming and rate expectations in focus, would continue to closely monitor macro indicators and global risk sentiment.
In India, the Industrial Production for the month of December 2025 would be announced on Wednesday (28 January 2026). The industrial production in India grew 6.7% from the previous year in November of 2025, accelerating from the upwardly revised 0.5% increase in the previous month, to mark the sharpest pace of expansion since October of 2023.
On Friday (30 January 2026), the government budget value for the period ended in December would be made public. India’s fiscal deficit widened to Rs 9.77 trillion in April–November 2025–26, up from Rs 8.47 trillion a year earlier, reaching 62.3% of the government’s full-year target compared with 52.5% in the same period last year. Total receipts rose 2.9% year-on-year to INR 19.49 trillion (55.7% of the annual target) while total expenditure increased 6.7% to Rs 29.26 trillion (57.8% of the full-year target).
Lastly, the foreign exchange reserves position for the week ended on January 23 would be unveiled on the same day. The foreign exchange reserves in India increased to $687,190 million in January 9 from $686,800 million in the previous week.
In China, Industrial Profits (YTD) data for the period ended in December 2025 would be released in Tuesday (27 January 2026). The profits at China’s industrial firms edged up 0.1% yoy to CNY 6.63 trillion in January–November 2025, notably easing from a 1.9% increase in the first ten months but still marking a fourth consecutive gain since August.
In the United States, the Dallas Fed Manufacturing Index data for the month of January would be announced on Monday (26 January 2026). The Dallas Fed’s general business activity index for Texas manufacturing fell 0.5 points to (-10.9) in December 2025, its lowest level since June, while the outlook index sank deeper into negative territory at (-11.9), indicating a deterioration in perceptions of broader business conditions.
On Tuesday (27 January 2026), the ADP Employment Change Weekly figures would be made public. The US private employers added an average of 8,000 jobs per week in the four weeks ending December 27, 2025, down from an average gain of 11,250 in the previous period, according to ADP Research.
On Wednesday, the API Crude Oil Stock Change for the week ended on January 23 would be unveiled. US crude oil inventories rose by 3.04 million barrels in the week ended 16 January 2025, building on a 5.3 million-barrel increase in the prior week.
On Thursday (29 January 2026), the US Federal Reserve will announce its latest monetary policy decision. The minutes from the Fed's December meeting noted that most of the FOMC judged that rate cuts are likely to be appropriate next year if inflation eases over time.
Still, policymakers were divided in their assessment of risks between higher inflation and unemployment, with a part of the FOMC displaying greater concern that inflation becoming entrenched may require higher borrowing costs, while others preferred a greater magnitude of rate cuts to curb signs of a softening labor market.
Further, the US Balance of Trade figures for November 2025 would be released on the same day. The US trade deficit narrowed sharply to $29.4 billion in October 2025, the smallest gap since June 2009, down from a revised $48.1 billion in September.
On Friday (30 January 2026), the Producer Price Index for the month of December 2025 would be made public. The US producer prices rose 0.2% month over month in November 2025, accelerating from a 0.1% increase in October, according to delayed data from the Bureau of Labor Statistics.