Indian equity benchmarks BSE Sensex and NSE Nifty slipped into losses during early Friday trade after opening marginally higher, signaling continued market instability following Thursday's sharp selloff. Investors remained focused on key technical support levels as the market struggled to find direction.

Market Performance Overview

The benchmark indices showed weakness in morning trade, with both major indexes declining approximately 0.1% from their opening levels.

Market breadth remained decisively negative, reflecting broad-based selling pressure across market segments. The decline extended beyond frontline indices, with midcap and smallcap stocks also trading lower, indicating reduced risk appetite among investors.

Sectoral Performance and Individual Stock Movements

Weakness was visible across most sectoral indices during early trade. Realty, media, pharma and private banking stocks emerged as key laggards, while limited support came from IT, PSU banks and oil and gas stocks. India VIX edged higher to around 10.7, reflecting subdued volatility but lingering nervousness following the recent correction.

On the Nifty, selective buying was observed in ONGC, Asian Paints, Bharat Electronics and HCL Technologies. Conversely, Adani Enterprises, Adani Ports and Special Economic Zone and ICICI Bank weighed on the index, reflecting pressure in financials and select index heavyweights.

Global Market Influences

Mixed overnight cues from international markets contributed to the cautious sentiment. US markets ended Thursday's session with varied performance - the Dow Jones Industrial Average rose 0.55%, the S&P 500 closed flat, and the Nasdaq declined 0.44% amid technology stock weakness. Asian markets traded mixed in early hours as investors awaited key US payroll data and clarity on trade-related developments. Crude oil prices extended gains on developments in Venezuela and Iran, adding uncertainty for risk assets.

Technical Analysis and Support Levels

Technical commentators noted that Nifty's break below key short-term supports has shifted the near-term bias to cautious. The 25,800-25,700 zone on Nifty is now viewed as a crucial support band where a hold could allow for stabilization or a technical rebound. On the upside, the 26,000-26,050 zone has turned into immediate resistance, with analysts indicating that only a sustained move back above these levels would ease current pressure.

Institutional Flow Impact

Institutional flows continued to present challenges for market stability. Foreign institutional investors sold equities worth approximately ₹3,367 crores on January 8, extending their selling streak to a fourth consecutive session. Domestic institutional investors provided support with net purchases of around ₹3,701 crores, partially offsetting foreign selling pressure.

Maharashtra's declaration of January 15, 2026, as a civic poll holiday has created uncertainty among investors regarding stock market operations, as major exchanges have yet to announce any trading disruptions despite the statewide holiday for municipal elections.

Maharashtra Declares Civic Poll Holiday

The Maharashtra government announced January 15, 2026, as a public holiday to facilitate municipal corporation elections across the state. The decision affects all 29 municipal corporations in Maharashtra, with the holiday declared through an official circular from the General Administration Department.

The state government's objective is to ensure maximum voter participation by removing work-related barriers that might prevent eligible citizens from exercising their voting rights during the municipal elections.

Stock Market Operations Remain Unclear

BSE and NSE have not issued any official announcements regarding trading suspension on January 15, 2026. The date does not appear on either exchange's official holiday calendar, suggesting normal market operations are currently planned.

Traders and investors remain concerned about potential last-minute announcements that could disrupt trading schedules, particularly given the significance of the date for derivatives trading.

Weekly Derivatives Expiry Adds Complexity

January 15, 2026, coincides with the weekly expiry of Sensex derivatives, adding another layer of complexity to the situation. Weekly expiry sessions typically witness heightened market activity and require careful risk management.

Key Trading Characteristics:

• Increased trading volumes
• Higher market volatility
• Significant trading activity surge
• Critical settlement processes
• Important rollover strategies

Any unexpected holiday announcement could severely impact trading activities, making clear communication from exchanges essential for proper market functioning and risk management.

RBI Silence Creates Additional Uncertainty

The Reserve Bank of India has not provided clarification regarding the operational status of banks or RBI-regulated markets on January 15, 2026. Historically, holidays declared under the Negotiable Instruments Act often result in bank and money market closures, adding to the current uncertainty.

Current Market Expectations

Based on available information, both stock markets and banking operations are expected to continue normally on January 15, 2026. However, market participants await potential notifications from key regulatory bodies including RBI, BSE, NSE, or SEBI that could alter this expectation.

Investors and traders are advised to monitor official communications from exchanges and regulatory authorities for any updates regarding market operations on the civic poll holiday.