Indian equity markets staged a recovery on Thursday, with benchmark indices snapping their two-day losing streak as technology stocks led the rally following Infosys' better-than-expected third-quarter results and upgraded revenue growth outlook, injecting fresh optimism into a range-bound market.

Market Performance Overview

The key market indices showed positive momentum, though they settled off their daily highs due to profit-booking at higher levels:

Both indices gave up significant intraday gains in the latter half of the session as investors adopted a cautious stance ahead of key earnings announcements from HDFC Bank and ICICI Bank scheduled for January 17.

Technology Sector Leads Rally

The Nifty IT index emerged as the top sectoral performer, surging 3.34% after Infosys reported better-than-expected results and upgraded its revenue growth outlook. The sector's outperformance reflected investor confidence in sustained demand for technology services.

"Indian equity markets ended marginally higher, supported by positive sentiment in IT & banking," said Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services.

Banking Sector Momentum Continues

Banking stocks provided additional support, with the Nifty Bank index extending its rally for the fifth consecutive session. The Nifty PSU Bank index gained 1.20%, while heavyweight private sector banks witnessed strong accumulation ahead of their quarterly results.

"Bank Nifty outperformed the broader market, led by strong gains in PSU banks," noted analysts at Bajaj Broking. The banking sector's sustained momentum ahead of major earnings announcements indicates investor optimism about quarterly performance.

Market Breadth and Individual Movers

Market breadth remained mixed, with 1,849 stocks advancing against 2,395 declining on the BSE, while 150 remained unchanged. Notably, 260 stocks hit 52-week lows compared to just 84 touching 52-week highs, indicating continued pressure in the broader market.

Major Decliners:

The Nifty Pharma index declined 1.30%, while the Nifty Metal index slipped 0.50% due to profit-booking after recent gains. The Nifty Smallcap 100 index underperformed, declining 0.28% to 17,362.30.

Technical Outlook and Currency Concerns

"Going ahead, for Nifty, the 100-day EMA zone of 25,600-25,550 will act as immediate support," said Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities. "On the upside, the 50-day EMA zone of 25,850-25,900, which also coincides with the rising trendline zone, will act as immediate resistance."

The Indian rupee remained under pressure, with analysts noting its underperformance relative to Asian peers stems from high dollar demand and retreating foreign capital. Markets are expected to remain volatile in the near term, with earnings from major banking heavyweights and global developments likely to influence sentiment in coming sessions.

The Indian stock market will remain completely closed for trading on January 15, 2026, following municipal corporation elections in Maharashtra. Both BSE and NSE have issued revised communications confirming the trading holiday across all market segments.

Exchange Notifications and Trading Segments

The BSE has issued a comprehensive circular detailing the closure across multiple trading segments. According to the circulars, trading will remain suspended across all major market categories:

The NSE has similarly updated its communication to declare January 15 a complete trading holiday for both the capital market and futures & options (F&O) segments.

Derivative Contract Adjustments

The market closure has necessitated changes to derivative contract schedules. The BSE, whose weekly F&O Sensex expiry is scheduled for Thursdays, has moved the expiry to Wednesday, January 14, in view of the trading holiday. These modifications will be reflected in the end-of-day contract master files to ensure smooth settlement processes.

Maharashtra Municipal Elections Impact

The trading holiday coincides with municipal corporation elections across Maharashtra, including Mumbai and neighbouring satellite cities of Thane and Navi Mumbai. Polling for the 2,869 seats spread across 893 wards will begin at 7:30 AM and conclude at 5:30 PM on January 15. A total of 3.48 crore eligible voters will decide the fate of 15,931 candidates, including 1,700 in Mumbai and 1,166 in Pune. The counting of votes will take place on January 16.

Complete 2026 Trading Holiday Calendar

After January 15, the next stock market holiday will be on January 26 for Republic Day. With the January 15 addition, Indian stock exchanges will observe 16 trading holidays in 2026:

Regular Trading Schedule

Investors can trade in the equities segment on all weekdays, except on exchange-declared holidays. The normal trading schedule includes pre-open session from 9:00 AM to 9:08 AM, regular trading from 9:15 AM to 3:30 PM, and closing session from 3:40 PM to 4:00 PM. Block deal sessions operate during morning window (8:45 AM to 9:00 AM) and afternoon window (2:05 PM to 2:20 PM).