Indian stock markets endured a challenging trading session on January 23, 2026, with benchmark indices closing lower amid persistent pressure from a weakening Indian rupee and sharp declines in key sectors. The Nifty 50 settled at 25,048.65, reflecting a roughly 1% drop across the board, while the midcap and smallcap indices saw steeper corrections of around 2%. This marked a continuation of the broader pullback that began in early January, with the Nifty sliding from its recent peak of approximately 26,373 to current levels in just over a month of trading. 

A major drag on sentiment came from the depreciation of the Indian rupee, which slipped further against the US dollar, touching fresh lows around 91.5-92 levels in recent sessions. This currency weakness contributed to broader market volatility, exacerbating selling in export-sensitive and import-dependent sectors. The Adani Group stocks bore the brunt of the day's selling pressure, with several key entities tumbling sharply. 

Adani Enterprises and Adani Ports both declined between 7-10%, while Adani Green Energy closed in deep red territory, reflecting heavy investor outflows. Other group stocks also faced significant selling, contributing to substantial erosion in market capitalization for the conglomerate amid ongoing concerns. Beyond the Adani pack, several frontline names extended their declines. 

Eternal continued its downward trajectory despite seemingly solid underlying numbers, dropping from recent highs around 370 rupees to the 260 level—a notable correction for a major Nifty constituent amid leadership transition uncertainties. InterGlobe Aviation (IndiGo), India's largest airline by market share, fell around 4% and has now corrected over 20% from its peak. Other losers included Jio Financial Services and Cipla, each down about 3.5%.

On the brighter side, select pockets offered refuge for investors. Dr. Reddy's Laboratories emerged as a standout gainer, rising around 2%, while Tech Mahindra climbed nearly 1%. In the broader market, metal stocks provided some resilience, with names like Nalco, APL Apollo Tubes (following strong numbers and guidance), and Hindalco posting gains. Other outperformers included Punjab National Bank (after a period of underperformance) and Laurus Labs, which has begun delivering improved results. 

The session capped a painful week for equities, with broader indices showing notable weakness. Market participants remain cautious as attention now shifts to the upcoming Union Budget, scheduled for later next week. Bulls, however, maintain optimism that the current dip could set the stage for a rebound, with hopes pinned on positive policy cues to revive momentum in the coming sessions.