SENSEX DROPS 448 PTS; FMCG SHARES SLIDES

The frontline equity indices traded modest losses in the early afternoon trade as investors weighed the risks of fresh U.S. tariffs against a steady stream of quarterly earnings reports that have kept hopes of an earnings recovery alive.

The Nifty traded below the 26,200 level. FMCG shares declined after advancing in the past trading session.

At 12:28 IST, the barometer index, the S&P BSE Sensex, tanked 447.65 points or 0.52% to 84,991.97. The Nifty 50 index declined 99.15 points or 0.36% to 26,151.15.

In the broader market, the S&P BSE Mid-Cap index fell 0.29% and the S&P BSE Small-Cap index dropped 0.43%.

The market breadth was weak. On the BSE, 1,548 shares rose and 2,389 shares fell. A total of 195 shares were unchanged.

Economy:

India�s services sector continued to expand in December 2025, but at the slowest pace in 11 months. The HSBC India Services PMI fell to 58.0 in December from 59.8 in November, indicating a moderation in activity while remaining well above the 50-point expansion threshold. Slower growth was driven by easing new business inflows and stalled hiring, while business confidence slipped to its lowest level in over three years. On the positive side, new export orders rose, supporting international demand, and inflationary pressures remained subdued, allowing firms to maintain competitive pricing. The composite PMI, which combines both services and manufacturing activity, also eased to 57.8, reflecting continued overall expansion of the economy but at a moderated pace.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rose 1.54% to 10.18. The Nifty 27 January 2026 futures were trading at 26,298.90, at a premium of 147.75 points as compared with the spot at 26,151.15.

The Nifty option chain for the 27 January 2026 expiry showed a maximum call OI of 54.7 lakh contracts at the 27,000 strike price. Maximum put OI of 64.3 lakh contracts was seen at 26,000 strike price.

Buzzing Index:

The Nifty FMCG index slipped 0.24% to 53,310.85. The index rallied 0.68% in the past trading session.

Emami (down 1.11%), United Breweries (down 1.08%), Dabur India (down 1.06%), ITC (down 0.99%), United Spirits (down 0.88%), Nestle India (down 0.65%), Colgate-Palmolive (India) (down 0.49%), Godrej Consumer Products (down 0.46%) and Britannia Industries (down 0.28%) declined.

On the other hand, Tata Consumer Products (up 1.02%), Varun Beverages (up 0.69%) and Patanjali Foods (up 0.53%) edged higher.

Stocks in Spotlight:

Utkarsh Small Finance Bank rose 1.32%. The bank reported a 3.9% drop in gross loan portfolio to Rs 18,306 crore as of 31 December 2025, compared with Rs 19,057 crore as of 31 December 2024.

Dev Information Technology advanced 2.82% after the company announced that it had secured an order worth about Rs 26 lakh from Core Technologies.

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