Equity Benchmarks Slide Again as Tariff Worries, Foreign Outflows Weigh

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

By Dehuti Jani

January 14, 2026 at 11:33 AM IST

Indian equity benchmarks ended lower on Wednesday, extending their losing streak to seven sessions out of the past eight, as concerns over US tariffs and continued foreign investor outflows overshadowed gains in select metal and banking stocks. The Nifty 50 fell 0.26% to 25,665.6, while the BSE Sensex declined 0.29% to 83,382.71. Over the past eight sessions, the indices have lost 2.5% and 2.8%, respectively. Market sentiment remained fragile amid uncertainty around the timing and contours of a potential India–US trade deal, especially after US President Donald Trump warned of additional tariffs on countries trading with Iran, adding to existing levies of up to 50% on Indian goods.

Sectorally, nine of the 16 major sectors closed in the red, with pressure seen in IT and realty stocks, while metals and select banks provided limited support. Tata Steel, NTPC and Axis Bank were among the top gainers on both the Sensex and Nifty, whereas Asian Paints, TCS, Maruti Suzuki and Tata Consumer Products weighed on the benchmarks. Broader markets outperformed marginally, with small-cap and mid-cap indices rising 0.7% and 0.3%, respectively, aided by stock-specific buying. Volatility remained elevated amid sustained foreign selling and firm crude oil prices.

Indian markets will remain closed on Thursday, January 15, 2026, due to municipal corporation elections in Maharashtra.

Top Movers of the Day

Union Bank of India shares jumped over 8%, hitting a multi-year high of ₹180 on the NSE, buoyed by strong momentum in PSU banking stocks. The stock touched its highest level since November 2017.

Axis Bank rose nearly 4% to a fresh 52-week high of ₹1,308.40 on the BSE, as investors positioned for improved performance in the second half of FY26.

Bank of Maharashtra gained about 4%, hitting a more-than-one-year high after reporting improved earnings and stable asset quality in Q3FY26.

RHI Magnesita India advanced 5% to an intraday high of ₹469.40 on the BSE after the company announced the appointment of an additional director.

Dredging Corporation of India climbed 5% to a new 52-week high of ₹1,159.15, supported by optimism over its business outlook.

NLC India rose 4% to an intraday high of ₹265.50 after signing an MoU with the Government of Gujarat at the Vibrant Gujarat Regional Conference.

RailTel Corporation of India slipped nearly 2.5% to an intraday low of ₹331.80, as profit-taking weighed on the counter.

Infosys and other IT stocks remained under pressure following Q3 earnings, with cautious commentary keeping sentiment weak across the IT pack.

Futures & Options
Nifty January 2026 futures settled at 25,728, commanding a 62.40-point premium over the cash market's Nifty 50 close of 25,665.60, down 66.70 points or 0.26%. India VIX edged up 1.09% to 11.32, signalling mild uptick in near-term volatility expectations, while HDFC Bank, Infosys, and Vedanta led trading volumes in NSE's F&O segment. January contracts expire January 27, 2026.

Bonds
Government bond yields rose for a second consecutive session on Wednesday as prices softened, with sentiment remaining cautious after a surprise decision to defer global index inclusion. The benchmark 10-year 6.48% 2035 bond yield climbed to 6.6498%, from 6.6277% in the previous session, as investors unwound positions built on expectations of foreign inflows. Market confidence was dented after Bloomberg Index Services postponed the inclusion of Indian government bonds in its flagship Global Aggregate Index, a move that had been widely anticipated and was seen as a key catalyst for overseas demand.

Forex
The rupee ended a volatile session modestly weaker on Wednesday as strong corporate dollar demand offset early gains driven by likely intervention from the Reserve Bank of India. The rupee closed at 90.2950 per US dollar, slightly softer than 90.19 in the previous session, after briefly strengthening to an intraday high of 90.03 on dollar sales by state-run and foreign banks. A pickup in importer hedging demand later in the session capped the currency’s recovery and dragged it back into negative territory.

Crypto
Crypto markets surged Wednesday, with total capitalization climbing 4.5% to $3.35 trillion, fuelled by cooler US inflation data and favourable regulatory signals that boosted sentiment across the board. Bitcoin led the charge, jumping 4.5% to a two-month peak near $95,800 before settling just under $95,000, while Ethereum stole the show with a brisker 6.7% gain. Altcoins followed suit, as XRP, BNB, and Solana each notched 4-5% advances.

US Stock Futures
US stock futures pointed lower Wednesday morning, extending Wall Street's pullback from recent record highs as investors digested mixed earnings, policy shifts, and fresh macro data. Dow Jones futures shed 101 points or 0.2%, S&P 500 futures dropped 11.75 points, and Nasdaq 100 futures eased 41 points, reflecting caution after Tuesday's session where the Dow plunged nearly 400 points hammered by financials as the weakest sector.

US Treasury Notes
US Treasury yields edged flat to slightly lower on Wednesday, during Europe market hours, with the 10-year benchmark steady at 4.17%-4.18% and the 2-year around 3.53%-3.54% ahead of November retail sales and PPI data. Contained trading reflects investor caution, amplified by uncertainties over Federal Reserve independence and potential Supreme Court tariff rulings. Live quotes confirm these levels, showing minimal deviation from prior closes.

Top News