EU-India trade deal; Deepinder Goyal Steps Down as Eternal Group CEO – Paper by Pocketful
Market Recap: 21st January, 2026
Top Gainers & Losers (Nifty 50)
🗞 Stock News Highlights
Eternal (+5.16%): Shares rallied after Q3 FY26 profit surged 73% to ₹102 crore from ₹59 crore, revenue soared 202% to ₹16,315 crore; Deepinder Goyal exited CEO role.
Vardhman Special Steels Ltd. (-2.06%): Stock edged lower after Q3 FY26 results presentation despite flat revenue growth of 0.9% YoY to ₹430.5 crore, as EBITDA surged 34% YoY to ₹56.5 crore and PAT jumped 56.5% YoY to ₹33.6 crore, driven by operational efficiencies and margin expansion, even as the market reacted cautiously.
Embassy Developments (- 0.71%): Stock slipped marginally amid weak market conditions, even as the company announced ₹4,500 crore MMR expansion across Worli, Juhu, Alibaug projects.
Supreme Industries Ltd. (- 0.71%): Stock slipped marginally amid weak market conditions, despite Q3 FY26 revenue rising 7% YoY to ₹2,687 crore, EBITDA at ₹314 crore, and net profit declining ~12% YoY to ₹158.5 crore.
🏢 Sectoral Performance
Metals | Nifty Metal (+0.57%): Index rallied with 9 pullers and 5 draggers, as gold and silver hit all-time highs, boosting sentiment amid demand–supply mismatch and improved China macro data.
Oil & Gas | Nifty Oil & Gas (+0.27%): Index moved higher on firm crude prices and improving margin outlook, led by Reliance Ind. Ltd., ONGC, and GAIL amid positive global energy cues and buying interest.
Consumer Durables | Nifty Consumer Durables (-1.66%): Index declined for the 9th consecutive session, remaining the worst-performing sector for the second straight day, with 4 pullers and 11 losers.
India Defence | Nifty India Defence (-1.24%): Index declined sharply, emerging among top NSE losers, as broad-based selling dragged stocks like Hindustan Aeronautics, Bharat Electronics and Bharat Dynamics, despite optimism around Union Budget 2026 defence allocations.
🔍 Market Insights
Technical Level: Nifty opened on a flat note and initially moved higher, forming a green candle that led to a brief bull trap. Selling pressure then dominated, with the index finding support near 24,920. A subsequent rebound faced resistance around 25,300, after which selling resumed, and Nifty closed around 30 points below resistance, reflecting a weak and cautious market undertone.
Advance-Decline Ratio: Market breadth was negative, with 1,078 advances versus 2,139 declines, reflecting widespread selling pressure.
The Big Picture: Top European Union leaders will visit India as Republic Day guests, with Narendra Modi set to host talks nearing an EU-India trade deal, alongside plans to upgrade strategic cooperation, fast-tracked since Ursula von der Leyen’s 2025 visit.
FII/DII Activity (Jan 20, 2026): Market activity showed strong DII buying of ₹3,666 crore, while FIIs were net sellers to the tune of ₹2,938 crore, reflecting a mixed institutional flow trend.
🔮 Watch Out For Tomorrow
Earnings Corner: MphasiS, Premier Energies, Zensar Technologies & Ujjivan Small Finance Bank are set to announce their Q3 results tomorrow.
Macro: Japan Balance of Trade (Dec) & USA GDP Growth Rate QoQ Final (Q3) are scheduled for release tommorow, likely to influence market sentiment.
Index Watch: Nifty opened on a flat note and continued its downward trend on the daily chart, before attempting a reversal near the 24,920 level. The index recovered modestly to close near the previous day’s close, raising questions over whether the move signals a genuine reversal or a temporary pullback trapping investors. Persistent FII selling, ongoing global market uncertainty, and cautious sentiment ahead of key events continue to keep the broader trend biased to the downside.
5 Day Course
Theme: Diversification in Large-Cap, Mid-Cap & Small-Cap Stocks
Day 3 – Wednesday: Growth Potential of Mid-Cap Stocks
Mid-cap stocks provide the sweet spot between safety and growth. These companies often turn into future large-caps.
Detailed Example: A mid-cap company trading at ₹400 improves profitability, expands exports, and gains market share. Over three years, the stock moves to ₹900. While large-caps deliver steady 10–12% CAGR, mid-caps can deliver 18–25% CAGR during growth phases.
📝 Word Of The Day
Short Covering: A phase where traders buy back previously sold positions to book profits or limit losses, often triggering sharp intraday rebounds even when broader market sentiment remains weak.
👀 Stay tuned. Stay diversified.
Until next time,
Team Pocketful.