Equities Slip for Third Straight Session Amid Geopolitical Jitters

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 7, 2026 at 11:36 AM IST

Indian equity benchmarks ended lower for a third consecutive session on Wednesday as caution prevailed amid geopolitical tensions and tariff-related worries, while losses in private lenders and automobile stocks weighed on sentiment. The Nifty 50 fell 0.14% to 26,140.75, while the BSE Sensex declined 0.12% to 84,961.14, extending their three-session losses to about 0.7% and 0.9%, respectively. Eleven of the 16 major sectoral indices ended in the red, with selling pressure concentrated in auto and oil & gas stocks.

Among Sensex constituents, Maruti Suzuki, Tata Motors Passenger Vehicles, Power Grid, HUL, Asian Paints and Tata Steel were the top laggards, while Titan, HCL Tech, Infosys, Tech Mahindra and Sun Pharma provided some support on the upside. The broader market outperformed frontline indices, with the Nifty Midcap 100 and Nifty Smallcap 100 gaining 0.45% and 0.39%, respectively. Sectorally, Nifty Auto and Nifty Oil & Gas were the worst performers, while Nifty Consumer Durables and Nifty IT led gains, rising 1.87%, indicating selective buying even as overall sentiment remained cautious.

Top Movers of the Day

Avenue Supermarts (DMart) shares jumped 5% to ₹3,844 on the BSE, marking the sharpest intraday rally in five months, even as broader markets remained weak.

BHEL climbed 3% to hit a 17-month high of ₹305.85, extending its four-month rally to 44% and trading near its highest level since August 2024.

PTC Industries moved higher after securing an order from ISRO’s Vikram Sarabhai Space Centre to convert 40 tonnes of titanium sponge into aerospace-grade alloy ingots.

Cipla shares slipped over 4% after reports said the US FDA flagged multiple compliance gaps at Pharmathen International’s facilities, weighing on pharma sentiment.

Gujarat Kidney and Super Speciality surged 9.5% to ₹110.8 intraday, outperforming the broader market amid strong buying interest in healthcare counters.

Senco Gold rallied nearly 13% to a three-month high after reporting strong Q3FY26 revenue growth, boosting sentiment in jewellery stocks.

Emmvee Photovoltaic Power jumped over 9% to ₹218.34 amid heavy volumes, extending gains in renewable energy names.

CMS Info Systems advanced after bagging a ₹10 billion, 10-year ATM management contract from SBI, set to go live from January 2026.

Futures & Options
Nifty January 2026 futures settled at 26,237.90, trading at a premium of 97.15 points over the Nifty 50’s cash close of 26,140.75. Market volatility eased marginally, with India VIX down 0.67% to 9.95, indicating subdued near-term risk appetite. HDFC Bank, ICICI Bank and Titan Company were the most actively traded stock futures on the NSE, while the January 2026 F&O contracts are set to expire on 27 January 2026.

Bonds
Government bond yields fell on Wednesday as the RBI announced a ₹500 billion bond purchase focused on illiquid papers maturing between 2029 and 2053, disappointing market expectations for inclusion of liquid benchmarks. The 10-year yield closed marginally lower at 6.6105%, largely unchanged from 6.6137% on Tuesday, as traders stayed cautious. Treasury bill auctions saw strong demand across tenors despite modest yield movements: the 91-day T-bill cut-off yield was 5.3110%, the 182-day at 5.5371%, and the 364-day at 5.5807%.

Forex
The rupee strengthened for a second straight session on Wednesday, closing 0.3% higher at 89.88 per dollar, its strongest finish in a week, supported by likely dollar sales from state-run banks amid renewed central bank intervention. The currency rose past the 90-per-dollar level to an intraday high of 89.86, reversing pressure from slightly weaker Asian peers, as traders said the RBI stepped in aggressively to stabilise the market and curb volatility.

Crypto
The cryptocurrency market showed subtle shifts on Wednesday, with Bitcoin holding near the $92,500 level after a sharp run from the low $87,000s to above $94,000 earlier in the week. Bitcoin dominance has started to ease, reviving discussions around a potential altcoin rotation as investors gradually reposition. Ethereum and major altcoins such as Solana, XRP and Litecoin traded mixed, reflecting cautious accumulation rather than aggressive risk-taking. The global crypto market capitalisation rose 1.52% to $3.18 trillion, supported by steady inflows and improving breadth across select tokens.

US Stock Futures
US stock futures were largely flat early Wednesday as investors paused after Wall Street extended its record run in the previous session, with attention shifting to the first labour market report of the week for fresh cues. Dow Jones futures hovered near the flat line, S&P 500 futures traded marginally lower, while Nasdaq 100 futures slipped 0.2% amid mild profit-taking in technology stocks.

US Treasury Notes
US Treasury yield ticked lower on Wednesday, with the benchmark 10-year Treasury yield little changed around 4.14%, just below its recent four-month high near 4.19%. Traders were balancing ongoing geopolitical developments with Venezuela alongside a slate of key economic data that could shape expectations for Federal Reserve policy.

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