Equities Extend Losing Streak, Post Worst Weekly Fall Since September

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

Amey Bane/iStockphoto.com

By Dehuti Jani

January 9, 2026 at 11:41 AM IST

Indian equity benchmarks fell for a fifth straight session on Friday, capping their steepest weekly decline in over three months as renewed worries over potential US tariffs unsettled investor sentiment. The Nifty50 dropped 0.75% to 25,683.30, while the BSE Sensex slipped 0.72% to 83,576.24. For the week, both indices lost around 2.5%, marking their worst performance since the week ended September 26, 2025. Broader markets also bore the brunt of selling pressure, with mid-caps and small caps declining 2.6% and 3.1%, respectively, while 15 of the 16 major sectors ended the week in the red.

Friday’s decline was led by realty, consumer durables and auto stocks, with markets turning lower shortly after opening as investors stayed cautious ahead of a US Supreme Court ruling on the legality of tariffs. Volatility surged, with India VIX jumping 15.6% over the week, its sharpest rise since May 2025. On the Sensex, Asian Paints, HCL Tech, BEL, Eternal, Reliance Industries and SBI were among the gainers, while NTPC, Adani Ports and SEZ, ICICI Bank, Bharti Airtel and Sun Pharma weighed on the index, underscoring the uneven stock-specific moves amid a broader risk-off mood.

Top Movers of the Day

IEX shares tumbled about 8% after the Electricity Appellate Tribunal deferred the hearing on market coupling regulations to January 19, 2026, adding uncertainty around the implementation timeline.

Elecon Engineering Company was among the worst-performing broader-market stocks, seen trading sharply lower (top loser list) as selling pressure hit industrial names.

JSW Steel shares gained after the company reported a 6% YoY rise in consolidated crude steel output to 7.48 million tonnes in the December quarter, signalling steady demand.

Force Motors shares dropped around 6%, reflecting broader weakness in cyclical and auto-related counters.

Trans & Rectifiers also declined roughly 5.9%, pressured by weak market sentiment and profit taking.

Tejas Networks shares slipped about 5.5% amid mixed trading, with investors cautious ahead of its Q3 results.

Bharat Coking Coal IPO was in focus as the issue opened for subscription, drawing strong investor attention and a robust grey market premium, indicating potential listing gains; this spotlight helped related sector stocks trade actively.

IREDA shares were active ahead of its Q3FY26 results announcement, with the stock in focus on expectations around earnings and asset-quality developments.

Futures & Options
Nifty January 2026 futures settled at 25,810.80, carrying a premium of 127.5 points over the cash market close. The widening futures premium reflected some rollover positioning despite the sharp sell-off in the cash market. Volatility picked up notably, with India VIX rising 3.06% to 10.93, indicating heightened near-term uncertainty amid tariff-related worries and global risk aversion. Indian Energy Exchange, HDFC Bank and Vodafone Idea emerged as the most actively traded stock futures on the NSE, underscoring continued churn in both defensive and high-beta names.

Bonds
Government bond yields rose slightly on Friday as traders remained cautious ahead of more debt supply. The 10-year 6.48% 2035 bond yield closed at 6.6401%, just above Thursday’s 6.6290%. Demand was strong at the latest auction, with bids for the 2040 and 2065 bonds far exceeding their notified amounts. The 2040 paper cleared at 7.1007%, and the 2065 bond at 7.4365%, both without devolvement, showing solid investor interest despite ongoing supply concerns.

Forex
The rupee weakened on Friday as dollar demand from maturing non-deliverable forward positions and corporate hedging weighed on the currency, while global markets remained cautious ahead of a key US Supreme Court ruling on trade tariffs. The rupee closed at 90.1625 per US dollar, down 0.1% on the day but largely unchanged on a weekly basis. Traders noted steady dollar buying at the central bank’s daily reference rate and routine hedging activity from importers and corporates, which capped any recovery in the local unit.

Crypto
The cryptocurrency markets traded mixed on Friday as investors positioned ahead of key US employment data, with overall volatility easing after a choppy week. Bitcoin was trading around $91,100, down 0.24% over the past 24 hours, but remained above the crucial $90,000 level and posted a weekly gain of about 2.5%, while Ethereum slipped 0.93% on the day but managed a near 3% rise for the week by holding above $3,000.

US Stock Futures
US stock futures were largely flat on Friday as investors adopted a wait-and-watch approach ahead of key catalysts, including the closely watched December jobs report and the possibility of a Supreme Court ruling on President Trump’s “Liberation Day” tariffs. Futures linked to the Dow Jones Industrial Average, S&P 500 and Nasdaq 100 hovered near unchanged levels after a mixed close in the previous session, where enthusiasm for technology stocks cooled.

US Treasury Notes
US Treasury yields moved modestly higher on Friday, as investors digested encouraging signals from the labour market and positioned ahead of the full December jobs report. The benchmark 10-year Treasury yield climbed to around 4.19%, while the 2-year yield edged up to about 3.51%, reflecting expectations that economic resilience could keep the Federal Reserve cautious on the pace of future rate cuts.

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