The Indian stock market is set to resume trading on Tuesday, January 27, 2026, following a closure on Monday, January 26, for Republic Day. Investors are likely to maintain a cautious to weak stance at the open, with the possibility of early gains facing selling pressure.

Market Performance and Expectations

On Friday, January 24, 2026, the BSE Sensex concluded the day at 81,537.70, a decrease of 770 points or 0.94%, while the Nifty 50 ended at 25,048.65, falling by 241 points or 0.95%. For the week ending January 24, the Nifty 50 experienced a decline of over 2.5%, settling at 25,048, and the Sensex fell nearly 2.4% to close at 81,537. This decline wasn't limited to the main indices, as midcap and smallcap stocks also saw significant market value erosion, signaling a risk-off sentiment.

As of January 27, 2026, early indicators suggest a potentially subdued opening. GIFT Nifty is showing a marginal increase, but the domestic benchmarks closed sharply lower in the previous session. The sharp declines in the Nifty and Bank Nifty indicate ongoing fragile sentiment, meaning any initial upward movement could encounter selling pressure.

Global and Domestic Cues

Global markets present a mixed picture. European markets are displaying mixed trading patterns, with slight gains in the FTSE being countered by declines in the DAX and CAC 40. This mixed global environment may restrict strong directional movements and encourage traders to be selective in their sector preferences.

Factors Influencing Market Sentiment

Several factors are expected to influence market behavior on January 27:

• Volatility: A significant rise in the India VIX indicates heightened volatility.
• FII/DII Activity: Continued selling by Foreign Institutional Investors (FIIs) remains a concern. However, consistent buying by Domestic Institutional Investors (DIIs) could provide some support against further declines, potentially leading to a volatile but range-bound session. During the past week, FIIs were net sellers, offloading equities worth Rs. 14,652 crore, while DIIs cushioned the market with net inflows of Rs. 20,746 crore.
• Earnings Commentary: Cautious domestic earnings commentary may continue to weigh on investor sentiment.

Stocks to Watch

Several companies may be in focus on January 27 due to recent announcements and business developments:

• PVR INOX: Has entered into agreements to sell its stake in Zea Maize to Marico Limited for Rs 226.8 crore.
• ICICI Bank: Reported a 14.8% rise in net profit for Q3FY26, with growth in Net Interest Income and deposits.
• Axis Bank: Posted a 3% year-on-year rise in standalone net profit for the December 2025 quarter.
• Kotak Mahindra Bank: Consolidated net profit rose 4.3% year-on-year.
• Yes Bank: Continuing its recovery in the December quarter.

Concluding Remarks

Given the weak global cues, fragile domestic sentiment, and ongoing FII selling, the Indian stock market is likely to experience a volatile session on January 27. Investors should closely monitor global cues, FII/DII activity, and key stock movements to navigate the trading day.