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Below the Quote on Weekly market outlook 16th January 2026 from Vinod Nair, Head of Research at Geojit Investments Limited 

"Indian equities ended the week with marginal gains, as sentiments oscillated between optimism over renewed India–US trade discussions and caution stemming from persistent geopolitical tensions. The investors gave more attention towards Q3 earnings, where the initial numbers from IT and banks provide a layer of confidence on growth and demand. The prolonging geopolitical tensions turned FIIs more risk averse in emerging markets and added upward pressure on bond yields.

Sectorally, PSU banks and metals outperformed, while pharma, consumer durables, and auto dragged.  On the earnings front, the IT sector gained attention after the industry’s bellwether revised its revenue guidance upward, while the broader IT space reported better-than-expected earnings growth. The banking sector also delivered encouraging trends, with early results showing continued improvement in asset quality alongside better earnings performance. Collectively, these developments set a constructive tone for the Q3FY26 season and continue to strengthen investor confidence in domestic earnings recovery.

Looking ahead, market sentiment is likely to be shaped by key global macro indicators, including U.S. PCE inflation, GDP prints, and jobless claims data, which will offer cues on the Federal Reserve’s rate outlook. Domestically, PMI readings and progress in earnings season and management commentary will be closely watched for near-term direction for the market."

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