January 16, 2026: Nifty Ends Flat as IT Stocks Rally, Banking Index Outperforms; Infosys, Tech Mahindra Lead Gains

Indian equity markets closed marginally higher on January 16, 2026, with the Nifty 50 settling at 25,694.35, up 28.75 points (0.11%). While headline indices remained largely range-bound, the session was marked by a strong rally in IT stocks and a notable outperformance in the Banking space, with Nifty Bank gaining 0.86%. Select heavyweights in technology provided upside support, even as profit-booking weighed on stocks such as ETERNAL, Jio Financial Services and Asian Paints.

Also Read: January 14, 2026: Nifty Ends Lower at 25,665 as IT and FMCG Weigh; Metals and PSU Stocks Outperform

Market Snapshot

• Nifty 50: 25,694.35 (+0.11%)

• Day’s High: 25,873.50

• Day’s Low: 25,662.40

• Nifty Next 50: 68,857.90 (+0.10%)

• Nifty Financial Services: 27,523.15 (+0.08%)

• Nifty Bank: 60,095.15 (+0.86%)

The broader market showed a mixed trend, with sectoral leadership shifting decisively toward technology and banking.

IT Stocks Power the Rally

The information technology sector emerged as the clear outperformer of the session, with all major IT names closing firmly in the green.

Top gainers among IT stocks included:

• Infosys (INFY): ₹1,689.10 (+5.58%)

• Tech Mahindra (TECHM): ₹1,672.00 (+5.26%)

• Wipro: ₹266.80 (+2.54%)

• HCL Technologies: ₹1,696.50 (+2.41%)

• TCS: ₹3,209.00 (+2.34%)

The rally suggests renewed buying interest in export-oriented technology stocks, likely supported by expectations of improved global demand outlook and stable currency dynamics.

Bank Nifty Outperforms as Financials Show Strength

The Nifty Bank index jumped 0.86%, significantly outperforming the benchmark indices. Buying interest in frontline banking stocks lifted overall sentiment in the financial sector, helping limit downside pressure on the broader market.

Market participants noted that banking strength continues to provide structural support to the indices amid rotational sectoral activity.

Stocks Under Pressure: Profit Booking in Select Heavyweights

Despite strength in IT, several heavyweight stocks witnessed declines, indicating sectoral rotation rather than broad-based buying.

Notable laggards included:

• ETERNAL: ₹288.00 (−3.76%)

• Jio Financial Services (JIOFIN): ₹277.95 (−3.15%)

• Cipla: ₹1,398.00 (−2.54%)

• Hindalco: ₹932.00 (−2.44%)

• Asian Paints: ₹2,756.70 (−2.03%)

Analysts attributed the decline to profit-booking at higher levels and stock-specific positioning rather than a deterioration in overall market sentiment.

Market Trend Indicates Sectoral Rotation

The trading pattern suggests that investors are increasingly adopting a selective stock-picking approach, with capital rotating into sectors showing earnings visibility such as IT and banking, while trimming exposure in select consumption and pharma counters.

Volumes remained healthy in key gainers like Infosys and TCS, reinforcing the conviction behind the IT-led rally.

Conclusion: January 16, 2026

The market’s close on January 16 reflected a stable but selective risk environment, with strong buying in IT stocks offsetting weakness in a few large-cap names. With banking and technology emerging as leadership sectors, the near-term trend points towards sectoral stock-specific opportunities rather than broad-based index momentum. Investors are likely to stay focused on earnings performance and global cues to guide further positioning.

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