January 2026 Market Review

Global markets started the year on a cautious note, with economic growth in the US and parts of Europe showing signs of slowing. Here are the key highlights and performance overview for January 2026.

February 17, 2026

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January 2026 Market Review

Global Markets – Key Highlights

  • Global markets started the year on a cautious note.
  • Economic growth in the US and parts of Europe showed signs of slowing.
  • Technology stocks declined due to:
    • Concerns about possible AI regulations
    • High valuations (stocks were considered expensive)
  • Extreme weather events raised worries about:
    • Supply chain disruptions
    • Rising inflation
  • Investors shifted money towards safer assets.
  • Gold and silver prices rose sharply in the first half of the month, followed by slight profit booking later.
  • Overall demand for precious metals remained strong.
Market trends

Indian Equity Markets – Performance Overview

  • Markets remained volatile (frequent ups and downs).
  • Nifty 50 declined from ~26,100 to ~25,320.
  • Sensex fell from ~85,000 to ~82,269.
  • Foreign Institutional Investors (FIIs) continued selling, especially mid-cap and small-cap stocks.
  • Domestic investors provided partial support through selective buying.
  • The IT sector underperformed due to global tech weakness.
  • Banking, PSU, and metal stocks saw selective buying based on domestic growth expectations.
  • Indian rupee weakened against the US dollar.
  • Gold and silver in India mirrored global trends — sharp rise early, mild correction later.

Mutual Fund Industry – Flow Trends

Overall AUM

  • Total mutual fund AUM rose to approximately ₹81.01 lakh crore.

Equity Mutual Funds

  • Net inflows of ~₹24,028 crore.
  • Around 14% lower than December 2025.
  • Indicates cautious investor sentiment towards equities.

Gold ETFs

  • Net inflows of ~₹24,040 crore.
  • More than double the previous month.
  • Strong preference for safe-haven investments.

SIP (Systematic Investment Plans)

  • Contributions remained steady at ~₹31,002 crore.
  • Nearly 9.9 crore active SIP accounts.
  • Reflects strong retail participation and long-term commitment.

Debt Mutual Funds

  • Significant inflows of ~₹74,827 crore.
  • Investors preferred relatively safer fixed-income options.

Hybrid Funds

  • Net inflows of ~₹17,356 crore.
  • Investors opted for balanced equity + debt strategies.

Overall Market Sentiment

  • Investor behaviour remained cautious.
  • Market volatility led to preference for safety and diversification.
  • Equity inflows moderated, while gold, debt, and hybrid funds gained traction.
  • SIP investments remained strong, showing continued long-term confidence despite short-term volatility.

Ria Jadav

Marketing Strategist | FIKAA

February 17, 2026

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