Bulls vs Bears: South Indian Bank, Cupid, NALCO Rally; Reliance, Trent and Swiggy Under Pressure

Indian equity benchmarks experienced a slight pullback on Tuesday, January 6, 2026, as the Nifty 50 retreated from its recent record-breaking streak. The Sensex dipped 0.50 per cent to 85,000 mark, while the broader Nifty 50 hovered around the 26,167 mark. This cooling-off period was largely driven by selling pressure in heavyweight stocks like HDFC Bank and Reliance Industries, which dampened overall market sentiment despite several mid-cap stocks showing resilience.

Trent Ltd Faces Sharp Sell-Off Over Growth Concerns

Trent Ltd emerged as a primary laggard, with its share price tumbling over 7.4 per cent. Despite reporting a 17 per cent year-on-year increase in Q3 FY26 revenue to Rs 5,220 crore, investors were spooked by the underlying data. While aggressive store expansion—including 48 new Zudio outlets—propped up the headline numbers, revenue per square foot dropped 15.7 per cent for the third straight quarter. This stagnation in productivity, coupled with premium valuations, triggered a wave of profit-booking as the market questioned the sustainability of its current margins.

Swiggy and Reliance Feel the Weight of Market Volatility

In the large-cap space, Swiggy Ltd saw its shares slide by 4.5 per cent following a significant block deal where Serum Institute of India offloaded over 1.1 million shares. Meanwhile, Reliance Industries dropped 3.4 per cent as it moved to quell rumours regarding its crude oil sourcing. The company issued a firm denial against reports claiming it was receiving Russian crude tankers at its Jamnagar refinery, clarifying that no such deliveries had occurred in the past three weeks or were scheduled for January, citing reputational concerns over the misinformation.

Metal Sector Finds Strength in Policy Support

On the winning side, National Aluminium Company Ltd (NALCO) surged 5.2 per cent, leading a broader rally in the metals sector. The catalyst for this move was the Indian government’s announcement of safeguard duties—ranging from 11 per cent to 12 per cent—on specific steel imports. This protectionist measure is intended to curb the influx of cheap overseas supply, thereby improving the pricing power of domestic producers. NALCO, in particular, benefited from this renewed optimism and the healthy demand outlook stemming from the manufacturing and infrastructure sectors.

Cupid Ltd Rebounds on Record Order Book

Cupid Ltd was one of the day’s standout performers, with its share price rallying 8.6 per cent. After a period of high volatility and recent profit-booking, the stock found fresh support from a stellar Q3 FY26 business update. Management signalled that the December quarter is poised to be their best, supported by a record-high order book. With plans to expand capacity at their Palava plant and a scheduled entry into the Saudi Arabian manufacturing market by 2027, investors have regained confidence in the company’s ability to exceed its annual revenue targets.

South Indian Bank Gains on Strong Deposit Growth

The banking sector saw positive momentum from South Indian Bank, which rose over 5 per cent following a robust provisional business report. For the quarter ending December 2025, the lender reported an 11.27 per cent increase in gross advances and a notable 12.17 per cent rise in total deposits. A highlight of the report was the 14.65 per cent growth in CASA deposits, which bolstered the bank’s CASA ratio to 31.84 per cent. This healthy liquidity position, combined with the successful redemption of listed debt, has set a positive tone ahead of its official financial results on January 15.

Mixed Outlook as Investors Pivot to Fundamentals

As the trading session progressed, the divergence between struggling heavyweights and thriving mid-caps underscored a market focused on specific earnings triggers and policy shifts. While the benchmarks remain near historic levels, the day's movement suggests a shift toward fundamental analysis and "wait-and-watch" strategies. Investors are clearly rewarding operational efficiency and favourable regulatory moves, while punishing companies that show signs of slowing internal productivity or face external valuation pressures.

Disclaimer: The article is for informational purposes only and not investment advice.