Benchmarks ease as tariff worries, expiry volatility weigh on sentiment

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

Dehuti Jani is an experienced project manager who also works as an independent financial journalist.

January 6, 2026 at 11:55 AM IST

Indian equity benchmarks closed lower on Tuesday, extending losses as tariff-related concerns and volatility around the NSE Nifty weekly derivatives expiry dampened investor sentiment. The Nifty 50 ended down 75.65 points, or 0.29%, at 26,174.65, while the BSE Sensex fell 376.28 points, or 0.44%, to close at 85,063.34, retreating from record levels seen earlier in the week. Heavyweight stocks such as HDFC Bank and Reliance Industries remained key drags, keeping benchmarks under pressure despite a steady flow of quarterly business updates that continues to support expectations of an earnings recovery.

Within the Nifty 50 pack, Trent, Reliance Industries and Tata Motors Passenger Vehicles were among the top losers, while Apollo Hospitals Enterprises, Bajaj Auto and ICICI Bank featured among the gainers. Broader markets were largely flat, with the Nifty Midcap 100 and Nifty Smallcap 100 showing limited movement. Sector-wise, Nifty Oil & Gas was the biggest laggard, sliding 1.8%, while Nifty Pharma outperformed. Overall, markets reflected a cautiously optimistic tone, with selective accumulation seen in banking, financials, metals, pharma and healthcare, even as profit-taking persisted in consumption-linked, oil-related, media and auto stocks.

Top Movers of the Day

GM Breweries shares surged as much as 6.49% to ₹1,328.80, hitting a 52-week high after the company posted strong Q3 results and saw renewed buying interest.

State Bank of India rose about 2% to a fresh high of ₹1,024, outperforming the broader market amid heavy volumes and continued bullish momentum over recent sessions.

L&T Finance climbed close to 3% to ₹329.40 following a strong Q3 business update that showed healthy retail loan growth and disbursements, reinforcing positive sentiment.

Premier Energies slumped over 5% to an all-time low near ₹748, extending declines amid persistent selling pressure as the stock hit fresh lows for the session.

Ethos shares gained around 4% to ₹3,059.65 after the company opened a new watch boutique in Ranchi, attracting buying interest

Allcargo Terminals rallied close to 6% to ₹29.35, supported by buying interest following its monthly operational update and expectations of improved cargo movement.

KSH International surged over 10% to ₹403.70, after the company reported a more than two-fold jump in net profit, driven by improved execution and operating leverage.

Futures & Options
Nifty January 2026 futures settled at 26,281.90, trading at a premium of 103.2 points to the Nifty 50’s cash close of 26,178.70. In the spot market, the Nifty 50 slipped 71.60 points, or 0.27%, reflecting a cautious undertone.

India VIX was largely flat, easing 0.04% to 10.02, indicating stable near-term volatility expectations.

Reliance Industries, Trent and HDFC Bank were the most actively traded single-stock futures in the NSE derivatives segment.

Bonds
Indian government bonds rebounded on Tuesday, snapping a two-session decline as the market absorbed heavy state debt supply without a sharp rise in yields, lifting sentiment.

The benchmark 10-year yield ended at 6.6137%, little changed from Monday’s close of 6.6331%. Earlier in the day, states raised ₹301 billion through bond auctions.

While cut-off yields were marginally higher than at the previous sale, investors took comfort from the full subscription, easing concerns about demand in an otherwise cautious market.

Forex
The rupee ended marginally higher on Tuesday, snapping a four-day losing streak as dollar sales by state-run banks and foreign lenders provided support. The currency opened at 90.2150 per dollar and strengthened to an intraday high of 90.09, aided by improved dollar supply and a tweak in the daily fixing mechanism. The rupee rose 0.1% to close at 90.1650, compared to 90.2750 on Monday. However, gains were capped as importers stepped up hedging on the uptick, limiting further appreciation.

Crypto
The global crypto market returned firmly to the green, signalling a renewed bullish phase as total market capitalisation surged back above the $3 trillion mark. Trading activity picked up sharply, with 24-hour volumes jumping 33% to $123.7 billion, reflecting rising investor participation. Bitcoin traded above $93,000, fuelling optimism around a potential move towards the $100,000 milestone, while Ethereum climbed 2.01% to $3,219, supported by broad-based buying across major digital assets.

US Stock Futures
US stock futures edged higher in early trade today, extending the Monday’s strong rally as investors looked past geopolitical tensions in Venezuela and focused on prospects of continued economic strength in the US. Futures tied to the S&P 500 were up 0.1%, while Nasdaq 100 futures gained 0.3%. Dow Jones Industrial Average futures traded largely flat, holding steady after the index’s record-setting advance earlier in the session.

US Treasury Notes
US Treasury yield edged slightly higher, with the benchmark 10-year note hovering near four-month highs, as markets remained cautious ahead of key economic data. Investor focus is on the December jobs report and evolving speculation around the next Federal Reserve chair, both of which could shape expectations for the future policy path.

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