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Union Budget likely to do fine-tuning existing schemes, reallocating spending toward high-multiplier areas, Budget to maintain fiscal discipline, support to export segments impacted due to tariffs, Focused push in budget to fast-track PSU privatisation could be a game changer

* Union Budget likely to do fine-tuning existing schemes, reallocating spending toward high-multiplier areas
* Budget to maintain fiscal discipline, support to export segments impacted due to tariffs
* Focused push in budget to fast-track PSU privatisation could be a game changer

shorts/business/daily-voice-focused-push-in-budget-2026-to-fast-track-psu-privatisation-could-be-a-game-changer-says-entrust-s-karthik

* Union Budget likely to do fine-tuning existing schemes, reallocating spending toward high-multiplier areas
* Budget to maintain fiscal discipline, support to export segments impacted due to tariffs
* Focused push in budget to fast-track PSU privatisation could be a game changer

According to Karthik S, the Head of Family Office Investment Advisory at Entrust Family Office, the focus in Union Budget is likely to be on fine-tuning existing schemes, reallocating spending toward high-multiplier areas, maintaining fiscal discipline, and possibly added support to export segments impacted due to tariffs.

A focused push in this budget to fast-track PSU privatisation which will unlock value, improve efficiency, and increase competitiveness could be a game changer, he believes.

On the recent rangebound market action, he is of the view that if earnings recovery broadens, market breadth is likely to improve. "Key drivers for market performance in 2026 include positive progress on tariffs, a strengthening earnings outlook, and stable geopolitical conditions," he said in an interview to Moneycontrol.

Do you expect meaningful reforms in the Union Budget, even after the government has announced several measures in recent months to boost economic and earnings growth? Which single focus area could be a game changer?

This year’s Budget will be under focus amid geopolitical tensions, and trade disruptions. With several growth-supportive measures already announced, such as continued focus on capex with faster infrastructure rollout, Direct tax benefits and GST rationalisation, expectations should hinge more towards measured reforms.

The focus is likely to be on fine-tuning existing schemes, reallocating spending toward high-multiplier areas, maintaining fiscal discipline, and possibly added support to export segments impacted due to tariffs. Maintaining continuity with selective targeted improvements could be expected rather than any sweeping changes.

A focused push in this budget to fast-track PSU privatisation which will unlock value, improve efficiency, and increase competitiveness could be a game changer.

Do you agree that PSUs offer significant upside and are now more reasonably valued than the private sector?

It is not possible to generalise. Select PSU banks and energy PSUs look attractive. PSU banks have witnessed re-rating recently benefiting from reasonable credit growth, asset book improvements, and expected NIM stability. Credit revival could potentially drive further re-rating. Energy-linked PSUs are entering an execution-led phase with more predictable cash flows.

On the other hand, few defence sector PSUs look expensive having seen significant valuation gains driven by robust order books and rising optimism on spends.

Certain segments offer attractive valuations, making 2026 a year for selective alpha. Well-managed PSUs with strong earnings visibility could deliver significant upside.

Which themes do you expect to perform well this year despite uncertain global cues?

Sectors such as banks, metals, autos, and few capital goods are poised to benefit from sustained infrastructure push, uptick in credit growth, and consumption trends. Progress on resolving tariff challenges could further accelerate export-oriented industries by providing significant tailwinds.

Additionally, energy, and select IT services remain attractive driven by increasing global demand and technological shifts. A clear policy framework on privatization could unlock substantial value in select PSU stocks, enhancing their growth prospects.

In general, companies showing better earnings visibility and comfort in valuations will benefit.

Do you expect the US Federal Reserve to continue its monetary policy easing cycle?

Recent Fed’s dot plot points to a gradual, limited easing for 2026–27, a shift from rapid easing to a measured strategy. Inflation has moderated but remains above target. The labour market shows slower job growth and GDP is projected to grow moderately.

Fed is expected to take a cautious data-driven approach, with modest cuts during the year if inflation eases and labour conditions soften.

Do you think US tariffs are likely to persist for a longer period?

India remains cautiously optimistic, with officials noting that active negotiations are underway with the US to manage and potentially ease tariff pressures through pragmatic negotiated solutions. At the same time, the US Supreme Court’s decision is still awaited. Given how long this has been ongoing, no one can predict the outcome or its timeline. We will have to wait and watch how it unfolds.

Do you expect the equity market to deliver a significant breakout, or remain range-bound in current year, given that performance has been largely flat over the past 15 months?

If earnings recovery broadens, market breadth is likely to improve. Key drivers for market performance in 2026 include positive progress on tariffs, a strengthening earnings outlook, and stable geopolitical conditions. Ultimately, the sustainability of the earnings trajectory is crucial to justify valuations and fuel a breakout in market performance. While we remain optimistic about the 2026 trend, it’s essential to closely monitor developments on the earnings front.

Do you believe this tough period will lead to the emergence of many important companies from India?

Tough times often provide opportunities for new leaders to emerge, and we really hope that this period helps Indian companies to emerge, reinvent and adapt to market shifts and become global leaders.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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Daily Voice: Focused push in Budget 2026 to fast-track PSU privatisation could be a game changer, says Entrust’s Karthik

According to Karthik S, the Head of Family Office Investment Advisory at Entrust Family Office, the focus in Union Budget is likely to be on fine-tuning existing schemes, reallocating spending toward high-multiplier areas, maintaining fiscal discipline, and possibly added support to export segments impacted due to tariffs.

A focused push in this budget to fast-track PSU privatisation which will unlock value, improve efficiency, and increase competitiveness could be a game changer, he believes.

On the recent rangebound market action, he is of the view that if earnings recovery broadens, market breadth is likely to improve. &quot;Key drivers for market performance in 2026 include positive progress on tariffs, a strengthening earnings outlook, and stable geopolitical conditions,&quot; he said in an interview to Moneycontrol.

Do you expect meaningful reforms in the Union Budget, even after the government has announced several measures in recent months to boost economic and earnings growth? Which single focus area could be a game changer?

This year’s Budget will be under focus amid geopolitical tensions, and trade disruptions. With several growth-supportive measures already announced, such as continued focus on capex with faster infrastructure rollout, Direct tax benefits and GST rationalisation, expectations should hinge more towards measured reforms.

The focus is likely to be on fine-tuning existing schemes, reallocating spending toward high-multiplier areas, maintaining fiscal discipline, and possibly added support to export segments impacted due to tariffs. Maintaining continuity with selective targeted improvements could be expected rather than any sweeping changes.

A focused push in this budget to fast-track PSU privatisation which will unlock value, improve efficiency, and increase competitiveness could be a game changer.

Do you agree that PSUs offer significant upside and are now more reasonably valued than the private sector?

It is not possible to generalise. Select PSU banks and energy PSUs look attractive. PSU banks have witnessed re-rating recently benefiting from reasonable credit growth, asset book improvements, and expected NIM stability. Credit revival could potentially drive further re-rating. Energy-linked PSUs are entering an execution-led phase with more predictable cash flows.

On the other hand, few defence sector PSUs look expensive having seen significant valuation gains driven by robust order books and rising optimism on spends.

Certain segments offer attractive valuations, making 2026 a year for selective alpha. Well-managed PSUs with strong earnings visibility could deliver significant upside.

Which themes do you expect to perform well this year despite uncertain global cues?

Sectors such as banks, metals, autos, and few capital goods are poised to benefit from sustained infrastructure push, uptick in credit growth, and consumption trends. Progress on resolving tariff challenges could further accelerate export-oriented industries by providing significant tailwinds.

Additionally, energy, and select IT services remain attractive driven by increasing global demand and technological shifts. A clear policy framework on privatization could unlock substantial value in select PSU stocks, enhancing their growth prospects.

In general, companies showing better earnings visibility and comfort in valuations will benefit.

Do you expect the US Federal Reserve to continue its monetary policy easing cycle?

Recent Fed’s dot plot points to a gradual, limited easing for 2026–27, a shift from rapid easing to a measured strategy. Inflation has moderated but remains above target. The labour market shows slower job growth and GDP is projected to grow moderately.

Fed is expected to take a cautious data-driven approach, with modest cuts during the year if inflation eases and labour conditions soften.

Do you think US tariffs are likely to persist for a longer period?

India remains cautiously optimistic, with officials noting that active negotiations are underway with the US to manage and potentially ease tariff pressures through pragmatic negotiated solutions. At the same time, the US Supreme Court’s decision is still awaited. Given how long this has been ongoing, no one can predict the outcome or its timeline. We will have to wait and watch how it unfolds.

Do you expect the equity market to deliver a significant breakout, or remain range-bound in current year, given that performance has been largely flat over the past 15 months?

If earnings recovery broadens, market breadth is likely to improve. Key drivers for market performance in 2026 include positive progress on tariffs, a strengthening earnings outlook, and stable geopolitical conditions. Ultimately, the sustainability of the earnings trajectory is crucial to justify valuations and fuel a breakout in market performance. While we remain optimistic about the 2026 trend, it’s essential to closely monitor developments on the earnings front.

Do you believe this tough period will lead to the emergence of many important companies from India?

Tough times often provide opportunities for new leaders to emerge, and we really hope that this period helps Indian companies to emerge, reinvent and adapt to market shifts and become global leaders.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broader indices lagged the benchmarks during the week, with mid- and small-cap indices extending losses for a second straight week, declining up to 0.4 percent.

For the week, BSE Sensex index fell 5.89 points at 83570.35, while Nifty50 index rose 11.05 points or 0.04 percent at 25694.35.

Sectorally, Nifty Consumer Durables, Realty, Pharma, Healthcare shed 2 percent each, Nifty Auto index slipped 1.75 percent and Nifty Media index down 1 percent during the week. On the other hand, Nifty PSU Bank, Metal added 4.5% each and Nifty IT index rose 2.8%.

Foreign Institutional Investors (FIIs) extended their selling in this week also as they offloaded equities worth Rs 14,265.58 crore. In contrast, Domestic Institutional Investors (DIIs) provided support to the market, purchasing equities worth RS 16,173.69 crore.

"The Indian equity markets experienced a range-bound trading week, with the benchmark index oscillating within the confines of its 50 and 100-day EMAs. Despite heightened intraday volatility and sharp swings in both directions, the Nifty50 concluded the truncated week on a subdued note, settling a tad below the 25700 mark and registering a marginal weekly gain of 0.04%," said Osho Krishan, Chief Manager -Technical and Derivative research at Angel One.

"The shortened trading week was eventful, influenced by a mix of global and domestic developments. Persistent concerns around trade tariffs and escalating geopolitical tensions continued to weigh on investor sentiment, fostering a cautious market environment. At the same time, ongoing quarterly earnings announcements and key macroeconomic data provided selective opportunities across sectors. Despite these headwinds, the market exhibited notable resilience. The Nifty50 index managed to contain downside risks, holding near the key EMA on the daily charts, underscoring the underlying strength and consolidation phase in the broader market structure."

"Going forward, it remains crucial to closely monitor global developments, particularly those related to trade tariffs and geopolitical tensions, as these factors are likely to act as significant catalysts in shaping near-term market trends. Additionally, several heavyweight constituents of the Nifty are scheduled to announce their earnings over the weekend, the impact of which is expected to be reflected in market action in the forthcoming sessions. In this backdrop, a prudent and disciplined approach is recommended, with market participants aligning their strategies around the aforementioned technical levels," he added.

The BSE Small-cap index declined nearly 0.5 percent during the week. Stocks such as Genesys International Corporation, Nectar Lifesciences, GTPL Hathway, Universal Cables, Tejas Networks, InfoBeans Technologies, Lotus Chocolate Company, United Foodbrands, Amal, Igarashi Motors, Cohance Lifesciences, Globus Spirits and Jindal Poly Films fell between 10–18 percent.

Meanwhile, Wardwizard Innovations and Mobility, JTL Industries, Antelopus Selan Energy, IFCI, Baazar Style Retail, Angel One, Dredging Corporation India, 3B BlackBio Dx, Neogen Chemicals and Antony Waste Handling Cell gained between 15–62 percent.

<img class="alignnone size-full wp-image-13776731" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260117024726_14332.png" alt="14332" width="760" height="584" />

Where is Nifty50 headed?

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities

Nifty on the weekly chart formed a small bull candle with upper and lower shadow. Technically, this market action signal formation of high wave type candle pattern after a sharp weakness of previous week. This reflects ongoing volatility in the market.

The underlying trend of Nifty remains choppy. A sustainable move above 25900 could open further upside for the next week. However, a slide below the support of 25500 could trigger more downside in the market ahead.

Ajit Mishra – SVP, Research, Religare Broking

The ongoing tussle around the medium-term moving average, the 100 DEMA near the 25,600 zone, is keeping participants cautious. The market is likely to take cues from the earnings announcements of key heavyweights such as Reliance Industries, HDFC Bank and ICICI Bank in early trade on Monday, which could determine the next directional move.

Until then, participants are advised to maintain a selective, stock-specific approach, focusing on sectors showing relative strength such as IT, financials and metals, while adhering to disciplined risk management in the prevailing volatile environment.

Amol Athawale, VP Technical Research, Kotak Securities

We are of the view that the current market formation is volatile and non-directional, and the short-term activity indicating a non-directional trend is likely to continue in the near future. On the downside, 25,500/83000 and 25,400/82700 would act as key support zones, while the daily SMA (Simple Moving Average) at 25,950/84600 and the 20-day SMA at 26,000/84800 would be crucial resistance levels for the bulls.

For Bank Nifty, as long as it is trading above the 20-day SMA at 59,500, the uptrend is likely to continue. On the higher side, it could move up to 60,500. Further upside potential may lift the index up to 60,800. Conversely, if it falls below the 20-day SMA at 59,500, the uptrend would become vulnerable.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broader indices underperform but these 27 small-cap stocks gain up to 62%

Broader indices lagged the benchmarks during the week, with mid- and small-cap indices extending losses for a second straight week, declining up to 0.4 percent.

For the week, BSE Sensex index fell 5.89 points at 83570.35, while Nifty50 index rose 11.05 points or 0.04 percent at 25694.35.

Sectorally, Nifty Consumer Durables, Realty, Pharma, Healthcare shed 2 percent each, Nifty Auto index slipped 1.75 percent and Nifty Media index down 1 percent during the week. On the other hand, Nifty PSU Bank, Metal added 4.5% each and Nifty IT index rose 2.8%.

Foreign Institutional Investors (FIIs) extended their selling in this week also as they offloaded equities worth Rs 14,265.58 crore. In contrast, Domestic Institutional Investors (DIIs) provided support to the market, purchasing equities worth RS 16,173.69 crore.

&quot;The Indian equity markets experienced a range-bound trading week, with the benchmark index oscillating within the confines of its 50 and 100-day EMAs. Despite heightened intraday volatility and sharp swings in both directions, the Nifty50 concluded the truncated week on a subdued note, settling a tad below the 25700 mark and registering a marginal weekly gain of 0.04%,&quot; said Osho Krishan, Chief Manager -Technical and Derivative research at Angel One.

&quot;The shortened trading week was eventful, influenced by a mix of global and domestic developments. Persistent concerns around trade tariffs and escalating geopolitical tensions continued to weigh on investor sentiment, fostering a cautious market environment. At the same time, ongoing quarterly earnings announcements and key macroeconomic data provided selective opportunities across sectors. Despite these headwinds, the market exhibited notable resilience. The Nifty50 index managed to contain downside risks, holding near the key EMA on the daily charts, underscoring the underlying strength and consolidation phase in the broader market structure.&quot;

&quot;Going forward, it remains crucial to closely monitor global developments, particularly those related to trade tariffs and geopolitical tensions, as these factors are likely to act as significant catalysts in shaping near-term market trends. Additionally, several heavyweight constituents of the Nifty are scheduled to announce their earnings over the weekend, the impact of which is expected to be reflected in market action in the forthcoming sessions. In this backdrop, a prudent and disciplined approach is recommended, with market participants aligning their strategies around the aforementioned technical levels,&quot; he added.

The BSE Small-cap index declined nearly 0.5 percent during the week. Stocks such as Genesys International Corporation, Nectar Lifesciences, GTPL Hathway, Universal Cables, Tejas Networks, InfoBeans Technologies, Lotus Chocolate Company, United Foodbrands, Amal, Igarashi Motors, Cohance Lifesciences, Globus Spirits and Jindal Poly Films fell between 10–18 percent.

Meanwhile, Wardwizard Innovations and Mobility, JTL Industries, Antelopus Selan Energy, IFCI, Baazar Style Retail, Angel One, Dredging Corporation India, 3B BlackBio Dx, Neogen Chemicals and Antony Waste Handling Cell gained between 15–62 percent.



Where is Nifty50 headed?

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities

Nifty on the weekly chart formed a small bull candle with upper and lower shadow. Technically, this market action signal formation of high wave type candle pattern after a sharp weakness of previous week. This reflects ongoing volatility in the market.

The underlying trend of Nifty remains choppy. A sustainable move above 25900 could open further upside for the next week. However, a slide below the support of 25500 could trigger more downside in the market ahead.

Ajit Mishra – SVP, Research, Religare Broking

The ongoing tussle around the medium-term moving average, the 100 DEMA near the 25,600 zone, is keeping participants cautious. The market is likely to take cues from the earnings announcements of key heavyweights such as Reliance Industries, HDFC Bank and ICICI Bank in early trade on Monday, which could determine the next directional move.

Until then, participants are advised to maintain a selective, stock-specific approach, focusing on sectors showing relative strength such as IT, financials and metals, while adhering to disciplined risk management in the prevailing volatile environment.

Amol Athawale, VP Technical Research, Kotak Securities

We are of the view that the current market formation is volatile and non-directional, and the short-term activity indicating a non-directional trend is likely to continue in the near future. On the downside, 25,500/83000 and 25,400/82700 would act as key support zones, while the daily SMA (Simple Moving Average) at 25,950/84600 and the 20-day SMA at 26,000/84800 would be crucial resistance levels for the bulls.

For Bank Nifty, as long as it is trading above the 20-day SMA at 59,500, the uptrend is likely to continue. On the higher side, it could move up to 60,500. Further upside potential may lift the index up to 60,800. Conversely, if it falls below the 20-day SMA at 59,500, the uptrend would become vulnerable.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

<img class="wp-image-13776598 size-full" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260116155620_market_flat.jpg" alt="Benchmark indices Sensex and Nifty ended the truncated week largely flat amid elevated volatility, weighed down by global trade uncertainties, geopolitical tensions, mixed global cues, and sustained FII outflows." width="1280" height="720" /> Benchmark indices Sensex and Nifty ended the truncated week largely flat amid elevated volatility, weighed down by global trade uncertainties, geopolitical tensions, mixed global cues, and sustained FII outflows.

<img class="size-full wp-image-13776601" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260116155736_stock-market.jpg" alt="BSE Sensex index fell 5.89 points at 83570.35, while Nifty50 index rose 11.05 points or 0.04 percent at 25694.35." width="1280" height="720" /> BSE Sensex index fell 5.89 points at 83570.35, while Nifty50 index rose 11.05 points or 0.04 percent at 25694.35.

<img class="size-full wp-image-13776720" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260117023021_sensex_nifty_sensex_market.jpg" alt="The BSE Mid-cap index ended marginally lower during the week, dragged down by LT Technology Services, Dixon Technologies, GE Vernova TD India, Hitachi Energy India, Bharti Hexacom and Kalyan Jewellers India. Meanwhile, Bank of India, Punjab &amp; Sind Bank, Oil India, Bank of Maharashtra, Federal Bank, Motilal Oswal Financial Services, Dalmia Bharat and Jindal Stainless emerged as gainers." width="1290" height="720" /> The BSE Mid-cap index ended marginally lower during the week, dragged down by LT Technology Services, Dixon Technologies, GE Vernova TD India, Hitachi Energy India, Bharti Hexacom and Kalyan Jewellers India. Meanwhile, Bank of India, Punjab &amp; Sind Bank, Oil India, Bank of Maharashtra, Federal Bank, Motilal Oswal Financial Services, Dalmia Bharat and Jindal Stainless emerged as gainers.

<img class="size-full wp-image-13776721" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260117023100_Sensex_nifty_market_down_Sensex.jpg" alt="The BSE Small-cap index declined nearly 0.5 percent during the week. Stocks such as Genesys International Corporation, Nectar Lifesciences, GTPL Hathway, Universal Cables, Tejas Networks, InfoBeans Technologies, Lotus Chocolate Company, United Foodbrands, Amal, Igarashi Motors, Cohance Lifesciences, Globus Spirits and Jindal Poly Films fell between 10–18 percent. Meanwhile, Wardwizard Innovations and Mobility, JTL Industries, Antelopus Selan Energy, IFCI, Baazar Style Retail, Angel One, Dredging Corporation India, 3B BlackBio Dx, Neogen Chemicals and Antony Waste Handling Cell gained between 15–62 percent." width="1280" height="720" /> The BSE Small-cap index declined nearly 0.5 percent during the week. Stocks such as Genesys International Corporation, Nectar Lifesciences, GTPL Hathway, Universal Cables, Tejas Networks, InfoBeans Technologies, Lotus Chocolate Company, United Foodbrands, Amal, Igarashi Motors, Cohance Lifesciences, Globus Spirits and Jindal Poly Films fell between 10–18 percent. Meanwhile, Wardwizard Innovations and Mobility, JTL Industries, Antelopus Selan Energy, IFCI, Baazar Style Retail, Angel One, Dredging Corporation India, 3B BlackBio Dx, Neogen Chemicals and Antony Waste Handling Cell gained between 15–62 percent.

<img class="size-full wp-image-13776723" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260117023136_Nifty_sensex_marketup.jpg" alt="The BSE Large-cap index ended with marginal gains during the week, led by Vedanta, Billionbrains Garage Ventures, Union Bank of India, IndusInd Bank, Punjab National Bank, Tech Mahindra, Oil and Natural Gas Corporation, Tata Steel and Hindustan Zinc. On the other hand, Polycab India, Divi’s Laboratories, CG Power and Industrial Solutions, Adani Energy Solutions, Cipla, ABB India, Larsen &amp; Toubro and Siemens were among the top losers." width="1280" height="720" /> The BSE Large-cap index ended with marginal gains during the week, led by Vedanta, Billionbrains Garage Ventures, Union Bank of India, IndusInd Bank, Punjab National Bank, Tech Mahindra, Oil and Natural Gas Corporation, Tata Steel and Hindustan Zinc. On the other hand, Polycab India, Divi’s Laboratories, CG Power and Industrial Solutions, Adani Energy Solutions, Cipla, ABB India, Larsen &amp; Toubro and Siemens were among the top losers.

<img class="size-full wp-image-13776726" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260117024147_market_down_Sensex-Nifty2.jpg" alt="During the week, State Bank of India added the most in market capitalisation, followed by Infosys, UltraTech Cement and Tata Steel. In contrast, Larsen &amp; Toubro, Reliance Industries and Maruti Suzuki India saw the largest erosion in market value. (Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the soles beneficiary.)" width="1280" height="720" /> During the week, State Bank of India added the most in market capitalisation, followed by Infosys, UltraTech Cement, and Tata Steel. In contrast, Larsen &amp; Toubro, Reliance Industries, and Maruti Suzuki India saw the largest erosion in market value. (Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)

<img class="size-full wp-image-13776727" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260117024209_stock1.jpg" alt="Foreign Institutional Investors (FIIs) extended their selling in this week also as they offloaded equities worth Rs 14,265.58 crore. In contrast, Domestic Institutional Investors (DIIs) provided support to the market, purchasing equities worth RS 16,173.69 crore." width="1280" height="720" /> Foreign Institutional Investors (FIIs) extended their selling this week, also as they offloaded equities worth Rs 14,265.58 crore. In contrast, Domestic Institutional Investors (DIIs) provided support to the market, purchasing equities worth RS 16,173.69 crore.

<img class="size-full wp-image-13776728" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260117024235_sensex_nifty_stocknew.jpg" alt="Sectorally, Nifty Consumer Durables, Realty, Pharma, Healthcare shed 2 percent each, Nifty Auto index slipped 1.75 percent and Nifty Media index down 1 percent during the week. On the other hand, Nifty PSU Bank, Metal added 4.5% each and Nifty IT index rose 2.8%." width="1280" height="720" /> Sectorally, Nifty Consumer Durables, Realty, Pharma, and Healthcare shed 2 percent each, Nifty Auto index slipped 1.75 percent, and Nifty Media index was down 1 percent during the week. On the other hand, Nifty PSU Bank and Metal added 4.5% each, and the  Nifty IT index rose 2.8%.

<img class="size-full wp-image-13776729" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260117024256_rupee_dollar.jpg" alt="The Indian rupee continued to weaken against the U.S. dollar during the week, slipping to 90.86 per dollar on January 16 from 90.16 a week earlier, with the currency moving in a band of 89.98–90.87." width="1280" height="720" /> The Indian rupee continued to weaken against the U.S. dollar during the week, slipping to 90.86 per dollar on January 16 from 90.16 a week earlier, with the currency moving in a band of 89.98–90.87.

Sectorally, Nifty Consumer Durables, Realty, Pharma, Healthcare shed 2 percent each, Nifty Auto index slipped 1.75 percent and Nifty Media index down 1 percent during the week.

Benchmark indices Sensex and Nifty ended the truncated week largely flat amid elevated volatility, weighed down by global trade uncertainties, geopolitical tensions, mixed global cues, and sustained FII outflows.

BSE Sensex index fell 5.89 points at 83570.35, while Nifty50 index rose 11.05 points or 0.04 percent at 25694.35.

The BSE Mid-cap index ended marginally lower during the week, dragged down by LT Technology Services, Dixon Technologies, GE Vernova TD India, Hitachi Energy India, Bharti Hexacom and Kalyan Jewellers India. Meanwhile, Bank of India, Punjab &amp; Sind Bank, Oil India, Bank of Maharashtra, Federal Bank, Motilal Oswal Financial Services, Dalmia Bharat and Jindal Stainless emerged as gainers.

The BSE Small-cap index declined nearly 0.5 percent during the week. Stocks such as Genesys International Corporation, Nectar Lifesciences, GTPL Hathway, Universal Cables, Tejas Networks, InfoBeans Technologies, Lotus Chocolate Company, United Foodbrands, Amal, Igarashi Motors, Cohance Lifesciences, Globus Spirits and Jindal Poly Films fell between 10–18 percent. Meanwhile, Wardwizard Innovations and Mobility, JTL Industries, Antelopus Selan Energy, IFCI, Baazar Style Retail, Angel One, Dredging Corporation India, 3B BlackBio Dx, Neogen Chemicals and Antony Waste Handling Cell gained between 15–62 percent.

The BSE Large-cap index ended with marginal gains during the week, led by Vedanta, Billionbrains Garage Ventures, Union Bank of India, IndusInd Bank, Punjab National Bank, Tech Mahindra, Oil and Natural Gas Corporation, Tata Steel and Hindustan Zinc. On the other hand, Polycab India, Divi’s Laboratories, CG Power and Industrial Solutions, Adani Energy Solutions, Cipla, ABB India, Larsen &amp; Toubro and Siemens were among the top losers.

During the week, State Bank of India added the most in market capitalisation, followed by Infosys, UltraTech Cement and Tata Steel. In contrast, Larsen &amp; Toubro, Reliance Industries and Maruti Suzuki India saw the largest erosion in market value. (Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the soles beneficiary.)

Foreign Institutional Investors (FIIs) extended their selling in this week also as they offloaded equities worth Rs 14,265.58 crore. In contrast, Domestic Institutional Investors (DIIs) provided support to the market, purchasing equities worth RS 16,173.69 crore.

Sectorally, Nifty Consumer Durables, Realty, Pharma, Healthcare shed 2 percent each, Nifty Auto index slipped 1.75 percent and Nifty Media index down 1 percent during the week. On the other hand, Nifty PSU Bank, Metal added 4.5% each and Nifty IT index rose 2.8%.

The Indian rupee continued to weaken against the U.S. dollar during the week, slipping to 90.86 per dollar on January 16 from 90.16 a week earlier, with the currency moving in a band of 89.98–90.87.

Benchmarks flat in volatile week; rupee weakens against dollar

<img class="wp-image-13776598 size-full" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260116155620_market_flat.jpg" alt="Benchmark indices Sensex and Nifty ended the truncated week largely flat amid elevated volatility, weighed down by global trade uncertainties, geopolitical tensions, mixed global cues, and sustained FII outflows." width="1280" height="720" /> Benchmark indices Sensex and Nifty ended the truncated week largely flat amid elevated volatility, weighed down by global trade uncertainties, geopolitical tensions, mixed global cues, and sustained FII outflows.

<img class="size-full wp-image-13776601" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260116155736_stock-market.jpg" alt="BSE Sensex index fell 5.89 points at 83570.35, while Nifty50 index rose 11.05 points or 0.04 percent at 25694.35." width="1280" height="720" /> BSE Sensex index fell 5.89 points at 83570.35, while Nifty50 index rose 11.05 points or 0.04 percent at 25694.35.

<img class="size-full wp-image-13776720" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260117023021_sensex_nifty_sensex_market.jpg" alt="The BSE Mid-cap index ended marginally lower during the week, dragged down by LT Technology Services, Dixon Technologies, GE Vernova TD India, Hitachi Energy India, Bharti Hexacom and Kalyan Jewellers India. Meanwhile, Bank of India, Punjab &amp; Sind Bank, Oil India, Bank of Maharashtra, Federal Bank, Motilal Oswal Financial Services, Dalmia Bharat and Jindal Stainless emerged as gainers." width="1290" height="720" /> The BSE Mid-cap index ended marginally lower during the week, dragged down by LT Technology Services, Dixon Technologies, GE Vernova TD India, Hitachi Energy India, Bharti Hexacom and Kalyan Jewellers India. Meanwhile, Bank of India, Punjab &amp; Sind Bank, Oil India, Bank of Maharashtra, Federal Bank, Motilal Oswal Financial Services, Dalmia Bharat and Jindal Stainless emerged as gainers.

<img class="size-full wp-image-13776721" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260117023100_Sensex_nifty_market_down_Sensex.jpg" alt="The BSE Small-cap index declined nearly 0.5 percent during the week. Stocks such as Genesys International Corporation, Nectar Lifesciences, GTPL Hathway, Universal Cables, Tejas Networks, InfoBeans Technologies, Lotus Chocolate Company, United Foodbrands, Amal, Igarashi Motors, Cohance Lifesciences, Globus Spirits and Jindal Poly Films fell between 10–18 percent. Meanwhile, Wardwizard Innovations and Mobility, JTL Industries, Antelopus Selan Energy, IFCI, Baazar Style Retail, Angel One, Dredging Corporation India, 3B BlackBio Dx, Neogen Chemicals and Antony Waste Handling Cell gained between 15–62 percent." width="1280" height="720" /> The BSE Small-cap index declined nearly 0.5 percent during the week. Stocks such as Genesys International Corporation, Nectar Lifesciences, GTPL Hathway, Universal Cables, Tejas Networks, InfoBeans Technologies, Lotus Chocolate Company, United Foodbrands, Amal, Igarashi Motors, Cohance Lifesciences, Globus Spirits and Jindal Poly Films fell between 10–18 percent. Meanwhile, Wardwizard Innovations and Mobility, JTL Industries, Antelopus Selan Energy, IFCI, Baazar Style Retail, Angel One, Dredging Corporation India, 3B BlackBio Dx, Neogen Chemicals and Antony Waste Handling Cell gained between 15–62 percent.

<img class="size-full wp-image-13776723" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260117023136_Nifty_sensex_marketup.jpg" alt="The BSE Large-cap index ended with marginal gains during the week, led by Vedanta, Billionbrains Garage Ventures, Union Bank of India, IndusInd Bank, Punjab National Bank, Tech Mahindra, Oil and Natural Gas Corporation, Tata Steel and Hindustan Zinc. On the other hand, Polycab India, Divi’s Laboratories, CG Power and Industrial Solutions, Adani Energy Solutions, Cipla, ABB India, Larsen &amp; Toubro and Siemens were among the top losers." width="1280" height="720" /> The BSE Large-cap index ended with marginal gains during the week, led by Vedanta, Billionbrains Garage Ventures, Union Bank of India, IndusInd Bank, Punjab National Bank, Tech Mahindra, Oil and Natural Gas Corporation, Tata Steel and Hindustan Zinc. On the other hand, Polycab India, Divi’s Laboratories, CG Power and Industrial Solutions, Adani Energy Solutions, Cipla, ABB India, Larsen &amp; Toubro and Siemens were among the top losers.

<img class="size-full wp-image-13776726" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260117024147_market_down_Sensex-Nifty2.jpg" alt="During the week, State Bank of India added the most in market capitalisation, followed by Infosys, UltraTech Cement and Tata Steel. In contrast, Larsen &amp; Toubro, Reliance Industries and Maruti Suzuki India saw the largest erosion in market value. (Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the soles beneficiary.)" width="1280" height="720" /> During the week, State Bank of India added the most in market capitalisation, followed by Infosys, UltraTech Cement, and Tata Steel. In contrast, Larsen &amp; Toubro, Reliance Industries, and Maruti Suzuki India saw the largest erosion in market value. (Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)

<img class="size-full wp-image-13776727" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260117024209_stock1.jpg" alt="Foreign Institutional Investors (FIIs) extended their selling in this week also as they offloaded equities worth Rs 14,265.58 crore. In contrast, Domestic Institutional Investors (DIIs) provided support to the market, purchasing equities worth RS 16,173.69 crore." width="1280" height="720" /> Foreign Institutional Investors (FIIs) extended their selling this week, also as they offloaded equities worth Rs 14,265.58 crore. In contrast, Domestic Institutional Investors (DIIs) provided support to the market, purchasing equities worth RS 16,173.69 crore.

<img class="size-full wp-image-13776728" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260117024235_sensex_nifty_stocknew.jpg" alt="Sectorally, Nifty Consumer Durables, Realty, Pharma, Healthcare shed 2 percent each, Nifty Auto index slipped 1.75 percent and Nifty Media index down 1 percent during the week. On the other hand, Nifty PSU Bank, Metal added 4.5% each and Nifty IT index rose 2.8%." width="1280" height="720" /> Sectorally, Nifty Consumer Durables, Realty, Pharma, and Healthcare shed 2 percent each, Nifty Auto index slipped 1.75 percent, and Nifty Media index was down 1 percent during the week. On the other hand, Nifty PSU Bank and Metal added 4.5% each, and the  Nifty IT index rose 2.8%.

<img class="size-full wp-image-13776729" src="https://images.moneycontrol.com/static-mcnews/2026/01/20260117024256_rupee_dollar.jpg" alt="The Indian rupee continued to weaken against the U.S. dollar during the week, slipping to 90.86 per dollar on January 16 from 90.16 a week earlier, with the currency moving in a band of 89.98–90.87." width="1280" height="720" /> The Indian rupee continued to weaken against the U.S. dollar during the week, slipping to 90.86 per dollar on January 16 from 90.16 a week earlier, with the currency moving in a band of 89.98–90.87.

Ashwini Shami expects fiscal and monetary initiatives to start reflecting in Q3 earnings, Expect Q4 also to exhibit strong earnings growth, Budget 2026 to focus on consumption, capex, Believe relative valuation narrowing between India and other emerging markets

* Ashwini Shami expects fiscal and monetary initiatives to start reflecting in Q3 earnings
* Expect Q4 also to exhibit strong earnings growth
* Budget 2026 to focus on consumption, capex
* Believe relative valuation narrowing between India and other emerging markets

shorts/business/daily-voice-two-factors-to-drive-equities-this-year-budget-focus-on-consumption-capex-ashwini-shami

* Ashwini Shami expects fiscal and monetary initiatives to start reflecting in Q3 earnings
* Expect Q4 also to exhibit strong earnings growth
* Budget 2026 to focus on consumption, capex
* Believe relative valuation narrowing between India and other emerging markets

According to Ashwini Shami, President and Chief Portfolio Manager at OmniScience Capital, current geopolitical factors are largely factored into existing market levels.

He said in an interview with Moneycontrol that the outlook for the year will primarily be determined by two factors: the continued impact of various fiscal and monetary stimulus measures on corporate earnings, and the relative underperformance of Indian markets compared with global peers.

Regarding the Union Budget, Shami expects the government to maintain strong allocations for capital expenditure and to announce incremental measures to support consumption.

Do you expect geopolitical tensions to remain in the news this year and cap the market’s upside?

The current geopolitical factors are broadly factored into the current market levels. The two factors that will broadly determine the outlook for this year will be - the continued impact of various fiscal and monetary stimulus on the corporate earnings and the relative underperformance of Indian markets compared to the global peers.

The time correction over the last one year and the improving growth rate for the Indian economy at 7-8% is likely to attract foreign flows. While there are pockets of significant overvaluations, we expect the fresh flows from both domestic and international investors to help reprice undervalued sectors such as banking, power, engineering &amp; construction and business services.

So, even though the broader market has come to the more reasonable valuations, there are significantly better opportunities for bottom-up, stock specific alpha-hunting scientific investors.

What could be the biggest reform in Union Budget 2026 that would decisively lay a strong foundation for equity markets?

Union budget for the last many years has been growth focused allocating significantly to capital expenditures while being exceptionally conservative on the revenue expenditures and at the same time improving the fiscal deficit numbers year on year.

The last year’s budget also focussed aggressively on boosting consumption through tax cuts. We expect the government to maintain the same trajectory of strong allocations on the capital expenditure and also announce incremental measures to support consumption.

Do you expect PSUs to be star performers this year?

Execution of orderbooks / work-in-progress projects shall continue to remain the key drivers of earnings growth and stock performance. For the undervalued names from financial services, housing finance, power and infrastructure one could also expect significant rerating resulting in even stronger stock performance.

Are you super bullish on BFSI after several years of underperformance in the sector?

Banking sector while being one of the most undervalued sectors has already witnessed significant unlocking over the last one year. While the Nifty 50 over the last one year delivered around 10% returns, Nifty Bank index is up nearly 22%. On the valuation front, Nifty 50 is at 22 price to earnings multiple whereas the bank index trades at 16 times earnings.

We expect this performance divergence to continue this year as market reprices public sector and private sector mid/smallcap banks and other financial services companies including pure play housing finance firms and infrastructure NBFCs.

Do you think 2026 will be challenging for the markets until earnings recover to mid-teen growth?

We believe with the relative valuation narrowing between India and other emerging markets and the economic growth rate improvement from 5.6% to 8.2% over the last one year, the case for FII inflows is becoming stronger. The expectation of a couple of additional rate cuts from the US Fed in view of softening labour market also supports the case for money moving to higher-yielding emerging markets.

We expect the upcoming budget to focus on boosting consumption further while sufficiently investing in the growth assets which we believe will support the overall economic growth in 2026 and also take markets higher.

Do you think the risk-reward ratio for gold and silver is unfavourable at current levels?

Precious metals have had a strong year triggered by the trend of de-dollarization and money moving to other currencies, including precious metals. The exceptional steep rise itself is indicative of exceptional price volatility and should caution investors who are allocating significantly to gold and silver. The price volatility seen in the lithium prices over the last 5 years is a good reminder of the price risk when prices go beyond the fundamentals.

Based on Q3 earnings announced so far, are you convinced that the earnings recovery is continuing and that Q4 numbers will be stronger?

While only a limited number of companies have reported their earnings so far, the overall trend looks positive for the undervalued sectors, especially in financial services where both private and public sector mid-cap banks have reported strong earnings growth and improving asset quality.

IT also reported better-than-expected numbers. We expect the fiscal and monetary initiatives to start reflecting in the Q3 earnings and expect Q4 also to exhibit strong earnings growth.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Daily Voice | Two factors to drive equities this year; Budget focus on consumption, capex: Ashwini Shami

According to Ashwini Shami, President and Chief Portfolio Manager at OmniScience Capital, current geopolitical factors are largely factored into existing market levels.

He said in an interview with Moneycontrol that the outlook for the year will primarily be determined by two factors: the continued impact of various fiscal and monetary stimulus measures on corporate earnings, and the relative underperformance of Indian markets compared with global peers.

Regarding the Union Budget, Shami expects the government to maintain strong allocations for capital expenditure and to announce incremental measures to support consumption.

Do you expect geopolitical tensions to remain in the news this year and cap the market’s upside?

The current geopolitical factors are broadly factored into the current market levels. The two factors that will broadly determine the outlook for this year will be - the continued impact of various fiscal and monetary stimulus on the corporate earnings and the relative underperformance of Indian markets compared to the global peers.

The time correction over the last one year and the improving growth rate for the Indian economy at 7-8% is likely to attract foreign flows. While there are pockets of significant overvaluations, we expect the fresh flows from both domestic and international investors to help reprice undervalued sectors such as banking, power, engineering &amp;amp; construction and business services.

So, even though the broader market has come to the more reasonable valuations, there are significantly better opportunities for bottom-up, stock specific alpha-hunting scientific investors.

What could be the biggest reform in Union Budget 2026 that would decisively lay a strong foundation for equity markets?

Union budget for the last many years has been growth focused allocating significantly to capital expenditures while being exceptionally conservative on the revenue expenditures and at the same time improving the fiscal deficit numbers year on year.

The last year’s budget also focussed aggressively on boosting consumption through tax cuts. We expect the government to maintain the same trajectory of strong allocations on the capital expenditure and also announce incremental measures to support consumption.

Do you expect PSUs to be star performers this year?

Execution of orderbooks / work-in-progress projects shall continue to remain the key drivers of earnings growth and stock performance. For the undervalued names from financial services, housing finance, power and infrastructure one could also expect significant rerating resulting in even stronger stock performance.

Are you super bullish on BFSI after several years of underperformance in the sector?

Banking sector while being one of the most undervalued sectors has already witnessed significant unlocking over the last one year. While the Nifty 50 over the last one year delivered around 10% returns, Nifty Bank index is up nearly 22%. On the valuation front, Nifty 50 is at 22 price to earnings multiple whereas the bank index trades at 16 times earnings.

We expect this performance divergence to continue this year as market reprices public sector and private sector mid/smallcap banks and other financial services companies including pure play housing finance firms and infrastructure NBFCs.

Do you think 2026 will be challenging for the markets until earnings recover to mid-teen growth?

We believe with the relative valuation narrowing between India and other emerging markets and the economic growth rate improvement from 5.6% to 8.2% over the last one year, the case for FII inflows is becoming stronger. The expectation of a couple of additional rate cuts from the US Fed in view of softening labour market also supports the case for money moving to higher-yielding emerging markets.

We expect the upcoming budget to focus on boosting consumption further while sufficiently investing in the growth assets which we believe will support the overall economic growth in 2026 and also take markets higher.

Do you think the risk-reward ratio for gold and silver is unfavourable at current levels?

Precious metals have had a strong year triggered by the trend of de-dollarization and money moving to other currencies, including precious metals. The exceptional steep rise itself is indicative of exceptional price volatility and should caution investors who are allocating significantly to gold and silver. The price volatility seen in the lithium prices over the last 5 years is a good reminder of the price risk when prices go beyond the fundamentals.

Based on Q3 earnings announced so far, are you convinced that the earnings recovery is continuing and that Q4 numbers will be stronger?

While only a limited number of companies have reported their earnings so far, the overall trend looks positive for the undervalued sectors, especially in financial services where both private and public sector mid-cap banks have reported strong earnings growth and improving asset quality.

IT also reported better-than-expected numbers. We expect the fiscal and monetary initiatives to start reflecting in the Q3 earnings and expect Q4 also to exhibit strong earnings growth.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Nifty Pulls Back After Reclaiming 25,800 Even As Banks & IT Shine; All Eyes On RIL Q3| Closing Bell Live

Nifty Pulls Back After Reclaiming 25,800 Even As Banks &amp; IT Shine; All Eyes On RIL Q3| Closing Bell Live

11 out of 18 years BSE POWER has given negative returns in January.

Type	R1	R2	R3	PP	S1	S2	S3
Classic	6,356.68	6,428.53	6,469.20	6,316.01	6,244.16	6,203.49	6,131.64
Fibonacci	6,358.99	6,385.55	6,428.53	6,316.01	6,273.03	6,246.47	6,203.49
Camarilla	6,295.14	6,305.46	6,315.77	6,316.01	6,274.52	6,264.20	6,253.89

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