Stock markets shut on account of Republic Day

Indian stock markets remained closed on Friday, January 26 to mark 75th Republic Day. The pause in trading extended across various segments, including the equity derivative, equity, SLB, currency derivatives, and interest rate derivatives segments. Additionally, the Multi Commodity Exchange (MCX) suspended morning trading on this national holiday.

The closure followed a challenging week for Sensex and Nifty, witnessing a decline primarily driven by underwhelming results from Tech Mahindra in the information technology (IT) sector and a continued retreat in financial stocks.

On Thursday, the benchmark NSE Nifty 50 index recorded a 0.47 per cent drop, settling at 21,352.60 and the S&P BSE Sensex fell 0.51 per cent closing at 70,700.67 points. This marked a cumulative 1.3 per cent dip for both indices over the three holiday-truncated sessions of the week, marking their weakest performance since the week ending October 27. With the market closed on Friday for a local holiday, the week concluded on a subdued note.

The financial sector, with its significant weightage, sustained losses for the second consecutive week, witnessing a 1.6 per cent decrease following a 4.1 per cent drop in the previous week. The initial trigger for this downward trend was HDFC Bank's disappointing margin report.

Over the past six sessions, foreign funds have sold shares worth Rs 34,766 crore, contributing to a 3 per cent decline in the Nifty 50. The market's performance reflects the prevailing cautious sentiment, possibly influenced by global and domestic factors.