Indian Stock Market in Red: Why Nifty50 and Sensex Slipped Despite Top Gainers

Indian Stock Market in Red: Why Nifty50 and Sensex Slipped Despite Top Gainers

Friday, January 23, 2026, was a day of two tales for the Indian stock market. The session began with cautious optimism, but by the afternoon, both the BSE Sensex and NSE Nifty50 had surrendered their gains to trade firmly in the red. This shift was primarily driven by persistent foreign selling, a trend that has been a significant headwind for domestic equities this year .

Yet, amidst the broader market weakness, pockets of strength emerged. Companies like Dr. Reddy’s Laboratories and Asian Paints bucked the trend to become the day’s top performers. So, what’s really going on under the hood of India’s financial markets? Let’s break it down.

Table of Contents

• Market Overview: A Flat Start Turns Red
• The Winners: Dr. Reddy’s and Asian Paints Lead the Pack
• The Losers: Adani Enterprises and Eternal Under Pressure
• The Investor Tug-of-War: FII Selling vs. DII Buying
• Broader Context: Asian Markets Show Resilience
• Conclusion: Navigating the Current Market Volatility
• Sources

Market Overview: A Flat Start Turns Red

The trading session kicked off on a quiet note, with indices hovering near their previous close. However, the lack of positive triggers and the weight of continuous foreign outflows soon took their toll. By the end of the day, the market sentiment had turned decidedly bearish .

This volatility underscores the current fragility of the market, which is caught between strong domestic fundamentals and global macroeconomic uncertainties that are driving foreign capital away.

The Winners: Dr. Reddy’s and Asian Paints Lead the Pack

Despite the overall market slump, some stocks managed to shine. On the Nifty50, the top gainers were a testament to the resilience of quality businesses with strong fundamentals.

• Dr. Reddy’s Laboratories: The pharma giant surged by 2.52%, continuing its strong run from the previous session where it jumped over 5% [[9], [17]]. This momentum is likely fueled by positive investor sentiment around its pipeline and consistent performance.
• Asian Paints: The paints leader wasn’t far behind, climbing 2.15% . Its stock has shown impressive strength, supported by rising volumes and robust activity in the futures and options segment, suggesting strong institutional confidence .
• Other notable gainers included Hindustan Unilever (HUL), Tata Consultancy Services (TCS), and Tech Mahindra, all posting gains of over 1% [[1], [5]].

These companies represent sectors—FMCG, IT, and Pharma—that are often seen as defensive plays during times of market stress, making them attractive to investors seeking safety.

The Losers: Adani Enterprises and Eternal Under Pressure

On the flip side, the realty and energy sectors came under severe pressure, dragging down the broader indices. The top losers of the day highlighted the vulnerability of certain segments.

• Adani Enterprises: The flagship company of the Adani Group was among the worst hit, plunging by 3.1% to an intraday low of Rs 2,022.80 . This decline adds to its weekly losses, which stand at over 5.6% .
• Eternal: The other major loser was Eternal, whose stock price fell by 3.19% . This drop comes just a day after the stock had surged 7% on strong Q3 results, indicating a classic case of post-results profit booking .

The sharp decline in these counters reflects a risk-off sentiment among investors, who are quickly moving away from high-beta or volatile stocks in the current uncertain environment.

The Investor Tug-of-War: FII Selling vs. DII Buying

The primary force behind Friday’s market weakness was the continued selling by Foreign Institutional Investors (FIIs). In January 2026 alone, FIIs have pulled out a staggering ₹22,420 crore from Indian equities, with the FMCG sector bearing the brunt of this selling pressure .

However, the market hasn’t collapsed thanks to a powerful counter-force: Domestic Institutional Investors (DIIs). Mutual funds and other domestic institutions have been consistent buyers, providing a crucial floor for the market [[42], [49]]. This dynamic has created a fascinating tug-of-war, where domestic savings are effectively offsetting foreign outflows .

This shift in market leadership—from foreign to domestic capital—is a significant long-term trend for the Indian stock market, making it more resilient to global shocks but also more dependent on local economic health.

Broader Context: Asian Markets Show Resilience

Interestingly, while India’s market was in the red, other Asian markets showed positive momentum [[Original Summary]]. This divergence suggests that the selling pressure on Indian equities is more specific to its own dynamics—like the FII-DII flow imbalance—rather than a broad regional selloff. For more on how global markets influence India, see our analysis on [INTERNAL_LINK:global-markets-impact-on-india].

Conclusion: Navigating the Current Market Volatility

The performance of the Indian stock market on January 23rd is a microcosm of its current state: a battle between strong domestic underpinnings and external pressures. The presence of clear winners and losers shows that stock selection is more critical than ever. Investors should focus on companies with solid earnings, strong balance sheets, and a history of weathering volatility. For a deeper understanding of market mechanics, the Securities and Exchange Board of India (SEBI) provides valuable resources for retail investors [https://www.sebi.gov.in/].

Sources

• Stock Market Live Updates 23 January 2026: Sensex, Nifty
• Top gainers and losers on Nifty50 and Sensex; check list
• Asian Paints Ltd Sees Significant Open Interest Surge
• Stock Market Highlights 22 January 2026
• Eternal Share Price Today 23 Jan 2026
• Adani Enterprises Ltd Hits Intraday Low Amid Price Pressure
• Adani Ent Share Price Live Updates
• Eternal Share Price Declines 2% After Surging 7%
• Foreign Investors Pull ₹22420 Crore from Indian Markets
• FII Selling Pressures Indian Markets; Indices Pare Gains
• Mutual Funds Drive 65 Per Cent Of DII Inflows Into Stock
• How FII and DII Activity Affects the Indian Market?
• Mutual Funds Drive 65 Per Cent Of DII Inflows Into Stock Market