According to a report by Motilal Oswal Mutual Fund, Indian domestic stock markets witnessed a notable decline in January 2026, underperforming several major global benchmarks. While global markets enjoyed positive momentum, the Nifty 50 closed at 25,320.65, registering a 3.10% fall during the month.

The stress was even more evident in the broader markets, with the Nifty Midcap 150 dropping 3.53% and the Nifty Smallcap 250 plunging 5.52%. Sector-wise, Metals and Defence were the rare bright spots, gaining around 6%, while FMCG, Realty, and Consumer Durables sectors faced steep declines ranging from 6% to 11%. In sharp contrast, US equities like the S&P 500 (+1.37%) and Nasdaq 100 (+1.20%) ended higher. Emerging markets such as China (+4.66%) and Taiwan (+11.09%) also delivered stronger returns, highlighting the relative pressure on Indian equities at the start of the year.