The BSE Sensex stood at 81,537.7, down 769.67 points or 0.94%, while the NSE Nifty50 closed at 25,048.65, falling 241.25 points or 0.95%. The near 1% fall in both indices reflected broad-based risk aversion rather than stock-specific issues.
The broader market fared even worse. The Nifty Midcap 100 ended 1.8% lower, while the Nifty Smallcap 100 fell 1.95%. This underperformance suggests that investors are currently avoiding riskier segments and preferring to stay defensive.
Impact on the stock market
Sector-wise performance
The Nifty Realty index was the worst performer, plunging 3.34%, as investors continued to book profits amid concerns around slowing housing sales. Nifty PSU Bank followed closely, declining 2.27%, reflecting ongoing caution around public sector lenders.
| Sector/Index | Performance |
| IT & BPM sector | -0.17% |
| Healthcare sector | -0.83% |
| Oil & Gas sector | -1.19% |
| Real estate sector | -3.34% |
| PSU Bank in India | -2.27% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| Dr Reddys Labs | 1,235.60 | 1.49 |
| Tech Mahindra | 1,701.10 | 0.81 |
| HUL | 2,409.50 | 0.79 |
| Hindalco | 950.30 | 0.62 |
| ONGC | 245.47 | 0.60 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| Adani Enterprise | 1,864.20 | -10.65 |
| Adani Ports | 1,308.40 | -7.48 |
| Eternal | 258.70 | -6.23 |
| Interglobe Aviation | 4,704.50 | -4.17 |
| Cipla | 1,315.00 | -4.04 |
Market aftermath: Impact on stocks
Coforge: Big acquisition, short-term costs, long-term ambition
Mid-tier IT company Coforge remained in focus after outlining details around its $2.35 billion acquisition of US-based Encora. The company expects integration costs of $10–15 million, which will be booked across Q1 and Q2 of FY27, while cost synergies are expected to start kicking in from Q1FY27.
Importantly, Coforge has decided not to raise funds through a QIP, choosing instead to finance Encora’s debt via bank funding at a “middle single-digit” interest rate. This move helps avoid earnings dilution, which the market generally views positively.
On the earnings front, Coforge’s Q3FY26 performance was largely in line with expectations. Revenue came in at ₹4,188 crore, slightly below estimates but still showing steady momentum. EBIT stood at ₹559.4 crore, while margins narrowed modestly to 13.4% from 14% in the previous quarter. In constant currency terms, revenue grew 4.4% sequentially, beating analyst expectations. The company also signed six large deals, taking total quarterly order intake to $593 million, signalling healthy demand.
Paytm: Sharp fall as policy uncertainty spooks investors
Paytm shares plunged nearly 10%, marking their biggest single-day fall in over a year. The stock slipped to ₹1,134.50, a three-month low, and is now down about 15% in just five sessions.
The key concern revolves around uncertainty over the RBI’s Payment Infrastructure Development Fund (PIDF) scheme, which is currently valid only until December 2025. If the scheme is not extended, Paytm could see an impact of nearly ₹200 crore in annualised operating revenue, directly affecting profitability.
Paytm clarified that it received ₹128 crore under the scheme for the six months ended September 2025 and said it expects to offset any potential impact over time through higher revenues and focused sales efforts. Still, the lack of clarity has made investors cautious ahead of Paytm’s Q3FY26 results scheduled for January 29.
Real estate stocks: Worst weekly fall in nearly a year
Real estate stocks had a brutal week, with the Nifty Realty index falling 9.2%, its steepest weekly drop in about 11 months. Stocks such as DLF, Anant Raj, Godrej Properties, Lodha Developers and Oberoi Realty saw sharp declines, with some names losing up to 15% over the week.
Brokerage firm Nuvama flagged a 6% year-on-year decline in housing sales value in the December quarter, the steepest fall since the upcycle began in 2021. Weak pre-sales and a heavy tilt towards luxury housing are emerging as key concerns.
DLF reported a 16% drop in sales bookings to ₹16,176 crore for the first nine months of the fiscal, largely due to lower new supply. While management remains confident of meeting annual targets, the numbers underline why investor sentiment around real estate has turned cautious.
Crude oil: Prices edge higher as tariff fears ease
Crude oil prices traded slightly higher after US President Donald Trump said he would not impose tariffs on Europe following discussions related to Greenland and the Arctic region.
On Thursday morning, Brent crude traded at $65.34 per barrel, up 0.15%, while WTI crude stood at $60.77, up 0.25%. In India, February crude futures on MCX rose to ₹5,586, gaining 0.31%.
The International Energy Agency (IEA) added a constructive outlook, forecasting global oil demand growth of 930,000 barrels per day in 2026, up from 850,000 barrels per day in 2025. Global oil supply is projected to rise to 108.7 million barrels per day, driven largely by non-OPEC producers.
Other commodities also saw movement, with natural gas futures on MCX jumping nearly 5%, while guargum prices moved higher and dhaniya futures edged lower.
Conclusion
Friday’s market action capped off a difficult week for Indian equities. With Sensex and Nifty both slipping close to 1%, weakness was visible across sectors, especially in real estate, PSU banks and broader markets. Stock-specific concerns around Paytm, cautious commentary from the real estate sector, and uncertainty ahead of global developments kept investors on the sidelines.
At the same time, steady earnings from companies like Coforge and stable crude prices offered small pockets of comfort. For now, the market appears to be in a wait-and-watch mode, with investors focusing on numbers, policy clarity and global cues before making their next move.
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