Indian equity markets closed higher on 22 Jan 2026, with the Sensex gaining 397.74 points (0.49%) to settle at 82,307.37 and the Nifty rising 132.4 points (0.53%) to 25,289.90. Broad-based sectoral advances and robust midcap performance underpinned the positive sentiment, despite the Nifty trading below its 50-day moving average. Foreign institutional investors remained net buyers, supporting the rally amid mixed global cues.

Cupid, a small-cap stock in the FMCG sector, has delivered an exceptional return of 176.39% over the past six months, significantly outpacing both its sector peers and broader market indices. Backed by a bullish technical outlook and very positive financial metrics, the stock’s remarkable performance highlights key catalysts driving investor enthusiasm despite its expensive valuation.

A select group of micro and small cap stocks have outperformed the broader market significantly over the past year, delivering extraordinary returns ranging from 160% to over 770%. These stocks, spanning sectors such as garments, fertilisers, FMCG, automobiles and auto components, have been propelled by strong fundamentals, bullish technicals and favourable sectoral tailwinds, leaving benchmark indices far behind.

The December 2025 quarter earnings season has revealed a nuanced picture across Indian equities, with 305 companies reporting results. While the overall proportion of positive earnings surprises has improved to 53.0%, this growth is unevenly distributed across market capitalisation segments and sectors, signalling a cautious yet optimistic outlook for investors heading into 2026.

Indian equity markets closed higher on 22 Jan 2026, with the Sensex gaining 0.50% to settle at 82,319.23, buoyed by strong midcap and smallcap performances. Market breadth was robust, with 379 advances against 118 declines across the BSE500, reflecting broad-based investor optimism despite recent volatility and a three-week decline in the benchmark index.

HDFC Asset Management Company Ltd (HDFCAMC) has witnessed a notable 10.98% increase in open interest in its derivatives segment, signalling heightened market activity and evolving positioning among traders. Despite the stock’s recent outperformance relative to its sector, technical indicators remain subdued, presenting a complex picture for investors analysing directional bets and liquidity dynamics.

HDFC Life Insurance Company Ltd has witnessed a significant 17.14% surge in open interest in its derivatives segment, signalling heightened market activity and shifting investor positioning. Despite this spike, the stock’s price performance remains subdued, trading below all major moving averages and underperforming its sector, raising questions about the underlying directional bets and market sentiment.

Tube Investments of India Ltd (TIINDIA) has witnessed a notable 10.06% surge in open interest in its derivatives segment, signalling heightened market activity despite the stock trading close to its 52-week low. This increase in open interest, coupled with subdued price performance and rising delivery volumes, suggests a complex interplay of investor positioning and potential directional bets in the auto components sector.

SBI Life Insurance Company Ltd (SBILIFE) witnessed a significant 17.3% increase in open interest in its derivatives segment on 21 January 2026, signalling heightened market activity and shifting investor positioning. Despite this surge, the stock underperformed its sector and broader indices, reflecting a complex interplay of bullish and bearish bets among traders.

AU Small Finance Bank Ltd (AUBANK) has witnessed a notable surge in open interest (OI) in its derivatives segment, rising by 11.67% to 51,175 contracts from 45,827 previously. This increase, coupled with robust volume and price action near its 52-week high, suggests a strengthening bullish sentiment among market participants and a potential directional shift in the stock’s near-term trajectory.

Aditya Birla Capital Ltd (ABCAPITAL) has witnessed a significant surge in open interest in its derivatives segment, with a 21.43% increase to 48,569 contracts, reflecting heightened market participation and potential directional bets. This development comes amid a positive price trend and rising investor engagement, suggesting renewed confidence in the mid-cap NBFC’s near-term prospects.

Varun Beverages Ltd (VBL) has witnessed a notable surge in open interest in its derivatives segment, signalling increased market participation and shifting investor sentiment. The stock outperformed its sector and the broader Sensex, reflecting renewed optimism after a brief correction phase.

PNB Housing Finance Ltd has witnessed a significant surge in open interest in its derivatives segment, coinciding with heightened volatility and a sharp decline in its share price. The sudden increase in open interest, coupled with elevated volumes and sustained price weakness, signals a notable shift in market positioning and investor sentiment towards the housing finance company.

ICICI Prudential Life Insurance Company Ltd (ICICIPRULI) has witnessed a notable surge in open interest in its derivatives segment, signalling a shift in market positioning and potential directional bets by traders. The stock outperformed its sector peers and the broader Sensex, reflecting renewed investor interest despite recent volatility.

Crompton Greaves Consumer Electricals Ltd has witnessed a significant 12.7% surge in open interest in its derivatives segment, signalling heightened market activity despite the stock’s ongoing downward trend. This spike in open interest, coupled with rising volumes and deteriorating price performance, suggests a complex interplay of investor positioning and potential directional bets amid a challenging market environment.