Sensex, Nifty Fall Nearly 1% as Adani Stocks Drag

On 23 January 2026, both benchmark indices slipped nearly 1%, driven by weak market breadth and heavy selling in select large caps. The Sensex declined 769.67 points (-0.94%) to 81,537.70, while the Nifty 50 fell 241.25 points (-0.95%) to 25,048.65.

Today’s Market Recap

Selling was broad-based across the market. Out of 3,085 stocks traded on the NSE, only 1,001 advanced, while 1,991 declined; a clear indicator that this was not just an index-led move.

Even as benchmarks stayed in the red, the market was not completely one-sided. IT and FMCG stocks held their ground, helping limit sharper damage.

Why Did The Market Drop Today?

1. FII Sell-offs

FIIs sold around ₹2,550 crore on Thursday, marking the 13th straight session of net selling in January. Even when markets try to rebound, FIIs are reportedly using rallies to add shorts, which limits upside and makes every bounce feel weak, keeping traders cautious.

2. Rupee Depreciation

The rupee slipped to a new all-time low of 91.77, mainly due to strong dollar demand from corporates/importers. This:

• Raises concerns about imported inflation

• Increases worries on trade deficit

• Signals capital outflow pressure

So even if equities are stable, rupee weakness alone can flip the market into risk-avoid mode.

3. Disappointing Q3 Results

Q3 earnings season so far has been subdued, and that is hurting sentiment.

Two key examples:

• IndiGo (InterGlobe Aviation) fell after Q3 profit dropped 78%

• Cipla slid after reporting a 57% YoY fall in net profit

4. Adani Selloff

Adani group stocks came under sharp pressure after reports that the US SEC sought court permission to serve summons via email to Gautam Adani and Sagar Adani.

This became a sentiment shock, not just a group-specific issue. Because Adani has index weight and high visibility, it pulled the market lower and increased intraday volatility.

The group’s combined market cap reportedly fell by about ₹1.1 lakh crore during the session.

Key Stock and Corporate Updates

• A number of company-specific updates shaped the narrative alongside broader market weakness:

• JSW Steel’s net profit in the December quarter is expected to increase 63% to ₹1,288 crore

• Urban Company posted a consolidated net loss of ₹21.26 crore for the December quarter, versus profit last year. It also approved an agreement with Amber Enterprises for the ‘Native’ brand.

Sterlite Technologies reported a consolidated net loss of ₹17 crore for the December quarter and the stock traded around 7% lower.

In the Global News

At the World Economic Forum in Davos, US President Donald Trump softened his stance on Greenland, temporarily ruling out military action and tariff threats against Europe. That helped cool geopolitical nerves. Asian markets reacted positively, and it briefly supported risk sentiment. For Indian markets, this kind of global relief usually improves the opening tone and reduces fear trades. But the mood stayed fragile. Investors know such signals can reverse quickly, so the impact on sentiment remained cautious, not bullish.

What Investors Can Do Before Markets Reopen On Tuesday

With markets now closed, trading action will pause until Tuesday, giving investors a short window to reset and reassess. The mood remains cautious after a sharp risk-off day, so it may not be the best time to rush into fresh positions.

In the meantime, investors can focus on a few practical things. Track FII flow trends and whether selling pressure is cooling. Keep an eye on the rupee, if it stabilises, sentiment can improve quickly. Follow key Q3 earnings announcements closely, because the next leg of market direction is likely to be stock-specific.

If volatility continues, a safer approach could be sticking to quality large-caps, avoiding leveraged bets, and keeping cash ready for more clarity. For long-term investors, corrections like these are often best used to build positions gradually, not all at once.

Sources

Economic Times

ScanxTrade

The Hindu Business Line