HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Key gauges extend gains in morning deals
Jan-16-2026

Indian equity benchmarks extended gains in morning deals, driven by a sharp jump in Infosys after the company raised its revenue growth guidance for FY26. Traders took encouragement with Commerce Secretary Rajesh Agrwal’s statement that India and the EU are very close to concluding negotiations on the proposed free trade agreement (FTA), with discussions underway to resolve remaining issues so that the deal is ready for announcement during the visit of top leadership later this month. Some support also came as the commerce ministry’s data showed that India’s merchandise exports rose 1.87 per cent to $38.5 billion in December 2025 as compared to $37.80 billion in December 2024, despite persistent global economic headwinds. Traders overlooked the Periodic Labour Force Survey (PLFS) released by the Ministry of Statistics and Programme Implementation (MoSPI) showed that unemployment rate for persons aged 15 years and above rose marginally to 4.8 per cent in December 2025 compared to 4.7 per cent in the preceding month. On the global front, Asian markets were trading mostly in green as regional measure of technology shares is rising to a record as investors increase their bets on artificial intelligence

The BSE Sensex is currently trading at 84093.38, up by 710.67 points or 0.85% after trading in a range of 83510.34 and 84126.35. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.76%, while Small cap index was up by 0.40%.

The top gaining sectoral indices on the BSE were IT up by 3.31%, TECK up by 2.14%, Realty up by 1.54%, Bankex up by 1.11% and Oil & Gas up by 0.86%, while Telecom down by 0.79%, Healthcare down by 0.32% and Capital Goods down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 4.74%, Tech Mahindra up by 2.13%, HCL Technologies up by 1.28%, Mahindra & Mahindra up by 1.13% and Bajaj Finserv up by 1.07%. On the flip side, Eternal down by 2.62%, Sun Pharma down by 1.38%, Bharti Airtel down by 1.34%, Bharat Electronics down by 0.86% and ICICI Bank down by 0.44% were the top losers.

Meanwhile, a domestic rating agency -- India Ratings and Research has said that deposit accretion has become a structural concern for Indian banks, and the ensuing high credit deposit (CD) ratio likely to also constrain loan growth in the near future. The agency maintained a neutral outlook on the banking sector for FY27, and stated that loan growth, which supports overall GDP, is expected to be 13 per cent in the next fiscal year.

Its head for financial institutions, Karan Gupta said elevated credit–deposit (CD) ratios remain a constraining factor for the banking system at 81.9 per cent in the first half of FY26, limiting loan growth in FY27 to 13 per cent. Referring to the low deposit growth in the system, the agency said deposit accretion is a structural concern. The agency noted that over the two years ending June 2024, advance growth consistently outpaced deposit growth by an average of 6.5 per cent, leading to tight liquidity in the system and elevated CD ratios.

From April 2025, the RBI has consistently tried to revive the economy and recent trends are suggesting a buoyant recovery environment for FY27, with a revival in lending to non-bank finance companies (NBFCs) and the retail sector, in addition to a lower yield curve supporting corporate disbursements. However, the agency said that the elevated CD ratio is still a major problem for the banking system and may increase to 83.2 per cent in FY27, potentially constraining incremental growth.

The CNX Nifty is currently trading at 25865.60, up by 200.00 points or 0.78% after trading in a range of 25678.40 and 25872.40. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Infosys up by 5.08%, Tech Mahindra up by 3.35%, Wipro up by 3.27%, Shriram Finance up by 3.15% and Tata Motors Passenger up by 2.37%. On the flip side, Cipla down by 2.47%, Eternal down by 1.45%, HDFC Life Insurance down by 1.33%, Sun Pharma down by 1.17% and Hindalco down by 0.80% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted added 627.33 points or 2% to 31,437.91, KOSPI increased 41.21 points or 0.85% to 4,838.76 and Straits Times rose 11.21 points or 0.23% to 4,844.55. On the flip side, Nikkei 225 slipped 20.5 points or 0.04% to 54,090.00, Shanghai Composite weakened 8.8 points or 0.21% to 4,103.80 and Hang Seng declined 88.62 points or 0.33% to 26,835.00.
  RELATED NEWS >>
Most Viewed >>
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.