Indian markets lag global peers, Nifty 50 down 3.1% in January: Report

According to a report by Motilal Oswal Mutual Fund, the domestic stock markets experienced a downturn in January 2026, which resulted in weaker performance compared to major international markets.

Domestic market performance in January 2026

The Nifty 50 index closed at 25,320.65, which represents a 3.10 per cent decline for the month of January. The Nifty Midcap 150 index experienced a 3.53 per cent decline while the Nifty Smallcap 250 index dropped 5.52 per cent during the month.

The Nifty 500 index experienced a 3.32 per cent decline during January because all sectors experienced downward market pressure. The report documented that the Nifty 50 index decreased by 3.1 per cent and the midcap and smallcap indices experienced declines of 3.5 per cent and 5.5 per cent, respectively, which showed market difficulties.

The Nifty 500 index experienced a decline because all sectors except commodities contributed to the downturn.

Sector-wise performance

The Metals and Defence sector managed to achieve a 6 per cent increase, while FMCG, Realty and Consumer Durables experienced declines between 6 per cent and 11 per cent throughout the month.

Global market performance

On the contrary, in January, global markets experienced positive market performance. The S&P 500 index in the United States increased by 1.37 per cent, while the Nasdaq 100 index gained 1.20 per cent and the Dow Jones Industrial Average rose 1.73 per cent during the month.

The report showed that US equities experienced an upward trend in January, as both Communication Services and Industrials sectors provided positive support.

Emerging markets outperform India

Emerging markets delivered superior investment results than India. The Chinese market increased by 4.66 per cent, while Taiwan experienced an 11.09 per cent rise, and Korea achieved a 28.11 per cent increase, and Brazil saw a 16.64 per cent growth during January. The South African market advanced by 8.21 per cent throughout the month.

Developed markets performance

The United Kingdom experienced a 5.11 per cent increase, and Japan achieved a 6.59 per cent increase in developed markets, while France gained 1.19 per cent, Switzerland rose 2.64 percent and Germany advanced 1.67 per cent during the month of January.

India vs Global markets

The data showed that global markets experienced positive growth in January 2026, yet Indian equities faced difficulties as both benchmark and broader indices finished the month with losses.

With ANI inputs