Indian equity markets are expected to open on a cautious note on Wednesday, January 21, 2026, tracking sharp losses across global markets overnight. GIFT Nifty hovered near the 25,300 mark, signalling a flat-to-weak start amid heightened volatility, even as select IT stocks such as Persistent Systems, Mastek and Wipro remain in focus on earnings and brokerage action.
Wall Street Slides Sharply; Volatility Spikes
Global risk sentiment weakened significantly after a steep sell-off in US equities on Tuesday. The S&P 500 tumbled 2.06%, while the Nasdaq Composite plunged 2.39%, dragged down by heavy selling in large-cap technology stocks including Nvidia, Tesla and Apple. The Dow Jones Industrial Average fell 1.76%, shedding over 870 points.
Market anxiety intensified as the CBOE Volatility Index (VIX) jumped 6.63% to 20.09, marking a clear shift to a risk-off environment. European markets mirrored the weakness, with the FTSE 100, DAX and CAC 40 closing lower.
Asian Markets Mixed; GIFT Nifty Offers Limited Support
Asian equities traded mixed in early hours, reflecting global uncertainty. While Japan’s Nikkei 225 and Hong Kong’s Hang Seng edged lower, GIFT Nifty rose marginally, offering limited support to domestic sentiment.
Derivative indicators pointed to consolidation, with maximum call open interest at 26,000 and maximum put open interest at 25,000, suggesting a narrow trading range. SAIL and SAMMAANCAP remained under the F&O ban.
Persistent Systems in Spotlight After Strong Q3
Among individual stocks, Persistent Systems drew strong attention after brokerages maintained a positive outlook following a robust Q3 performance.
UBS retained a Buy rating and raised its target price to ₹7,490, citing resilient execution and earnings strength.
Investec maintained a Hold while upgrading its target to ₹6,665, highlighting margin expansion and strong deal momentum.
The company reported $256 million in net new ACV, reinforcing confidence in its growth trajectory despite a cautious macro environment.
Mastek Delivers AI-Led Growth; Wipro Holds Ground
Mastek Ltd posted a resilient Q3FY26 performance, driven by AI-led deal wins. Profit rose 11.2% QoQ, margins improved to 16.1%, and the company announced an interim dividend of ₹8 per share. Its order backlog expanded over 24% YoY, underlining strong medium-term visibility.
Meanwhile, Wipro Ltd reported stable revenue and improved margins. While growth outlook remained muted, brokerages maintained a HOLD stance, citing margin resilience and easing attrition.
Currency and Commodity Check
The US dollar index eased slightly, offering marginal relief to emerging markets. Gold prices surged to record highs, reflecting investor preference for safe-haven assets amid rising volatility. Industrial metals traded mixed, mirroring global growth concerns.
Previous Session Recap
In the previous session, Indian benchmarks extended losses for the second straight day. The Nifty 50 fell 1.38% to close at 25,232.50, while the Sensex declined 1.28% to 82,180.47, led by selling in IT and metal stocks.
Market Outlook
With global volatility elevated and Wall Street under pressure, Indian markets may remain range-bound in the near term. However, stock-specific action—particularly in IT names with strong execution and deal momentum—could continue to attract investor interest, even as broader indices consolidate.
Disclaimer
This article is for information purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Stock market investments are subject to market risks. Readers are advised to consult their financial advisors before making any investment decisions. The information is based on publicly available disclosures and is believed to be accurate at the time of publication; however, no representation or warranty is made regarding its completeness or accuracy.
