Indian equity markets ended Tuesday's trading session in negative territory, with both benchmark indices recovering from their intraday lows. The BSE Sensex closed down 250 points at 83,628, while the NSE Nifty slipped 58 points to settle at 25,732, managing to hold above the crucial 25,700 mark.

Banking Sector Leads Recovery

Financial stocks provided the primary support to the markets, staging a recovery from lower levels during the session. The banking sector's resilience was evident in the performance of the Nifty Bank index, which bucked the overall trend to close in positive territory.

Market Breadth and Participation

Despite the recovery from session lows, market participation remained subdued throughout the day. Nearly 30 stocks in the Nifty index closed in negative territory, reflecting the broad-based weakness. Market breadth remained neutral with the advance-decline ratio standing at 1:1, indicating an equal number of gainers and losers.

Sensex Movers

The Sensex basket witnessed mixed performance across various sectors and individual stocks.

Top Gainers:

• Oil and Natural Gas Corporation Ltd
• Tech Mahindra Ltd
• Hindalco Industries Ltd
• ICICI Bank Ltd
• State Bank of India
• Tata Consultancy Services Ltd

Major Laggards:

• Trent Ltd
• Larsen & Toubro Ltd
• Dr Reddy's Laboratories Ltd
• Reliance Industries Ltd
• InterGlobe Aviation Ltd
• Hindustan Aeronautics Ltd
• Grasim Industries Ltd

Sectoral Performance and Individual Stock Movements

Defence stocks experienced the sharpest declines during the session, with Solar Industries, Zen Technologies, and DCX Systems emerging as the top losers in this segment. The IT sector showed mixed results, with Tata Consultancy Services gaining nearly 1% while HCL Technologies closed in the red following their respective Q3 results.

In individual stock movements, GTPL Hathway dropped 22% from its highs despite reporting a 9% year-on-year rise in profit after tax. Conversely, Eternal gained over 3% on expectations of increased MSCI weightage. Bank of Maharashtra provided a bright spot, rising 2% after reporting its Q3 results, which contributed to the banking sector's recovery.

Broader Market Impact

Heavyweight stocks significantly influenced the overall market direction, with major companies including Trent, Larsen & Toubro, Dr Reddy's Laboratories, InterGlobe Aviation, and Reliance Industries declining between 2% and 4%. In the midcap space, Dixon Technologies, AU Small Finance Bank, L&T Finance, Godrej Properties, and PB Fintech were among the top laggards, falling between 2% and 5%.

The session highlighted the continued challenges facing Indian equity markets, with broader market underperformance and weak participation offsetting the resilience shown by the banking sector.

Stock exchanges have announced significant schedule changes for traders as Maharashtra prepares for its civic elections. The BSE and National Stock Exchange (NSE) have declared January 15, 2026, as a trading holiday due to Municipal Corporation Elections, prompting the advancement of Sensex F&O expiry to January 14.

Trading Segments Affected

All major trading segments will remain closed on January 15, creating a comprehensive market shutdown. The closure encompasses multiple trading categories that typically operate on regular trading days.

Exchange Notifications and Timeline Changes

BSE issued a circular on January 12 detailing the schedule modifications. "Trading Members are requested to note that on account of Municipal Corporation Election scheduled to be held on January 15, 2026, the following trading segments will remain closed on January 15, 2026: Equity Segment, Equity Derivatives Segment, Commodity Derivatives Segment, Electronic Gold Receipts. Equity Derivatives Contracts scheduled to expire on January 15, 2026 shall be preponed to January 14, 2026," the exchange stated.

The NSE separately notified the market closure, confirming Thursday, January 15, 2026, as a trading holiday in the capital market segment. This represents a change from the exchange's earlier position, which had initially designated January 15 as only a settlement holiday while keeping trading operations open.

Government Holiday Declaration

The Maharashtra government officially declared January 15 as a public holiday in Mumbai to facilitate civic polls. This declaration affects multiple institutional categories across the city's jurisdiction.

The holiday applies comprehensively across Mumbai, including the city and eastern and western suburbs. Additionally, voters registered in Mumbai but working outside the city are covered under the government order, allowing them to participate in the electoral process.

Electoral Process and Market Context

Vote counting is scheduled for January 16, following the January 15 polling day. This civic election follows established precedent, as markets were similarly closed during the previous civic polls held in 2017.

Stock exchanges typically observe approximately 15 trading holidays annually, excluding regular weekend closures on Saturdays and Sundays. The civic poll holiday represents part of this standard holiday calendar, ensuring market participants can fulfill their civic duties while maintaining orderly market operations around significant public events.