Equity Benchmarks Decline Amid IT Selling, Renewed US Tariff Worries

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

Sourav Mishra

By Richard Fargose

Richard is an independent financial journalist who tracks financial markets and macroeconomic developments

January 5, 2026 at 12:10 PM IST

Indian equities ended lower on Monday as weakness in information technology stocks and fresh concerns over additional US tariffs weighed on benchmarks, offsetting a run of encouraging corporate updates that had lifted earnings expectations. The BSE Sensex fell 322.39 points, or 0.38%, to close at 85,439.62, while the NSE Nifty 50 slipped 78.25 points, or 0.30%, to end at 26,250.30.

Mid-cap stocks eased 0.2%, while small-cap shares outperformed with a 0.5% gain, signalling selective risk-taking beyond frontline indices.

HDFC Bank, the largest index constituent, dropped 2.4% after its October–December quarter business update showed loan growth running ahead of deposit growth, reviving concerns around funding costs.

Information technology stocks declined 1.4% ahead of the sector’s earnings season starting next week. HCL Technologies fell 2.2%, while Tech Mahindra slipped about 1%, reflecting caution given the sector’s high exposure to the US market.

Global equities advanced and bond yields were broadly steady, while oil prices softened as investors assessed developments around Venezuela. Ample global supply helped limit fears that the reported US capture of Venezuelan President Nicolás Maduro would disrupt crude flows from the country.

Top Movers of the Day
Avenue Supermarts slipped close to 2% despite reporting a 13% year-on-year rise in standalone revenue for the October–December quarter of 2025–26, suggesting expectations were already priced in.

CSB Bank hit the upper circuit as strong growth in the gold loan book lifted overall loan expansion.

Union Bank of India gained about 3% after reporting an improvement in loan growth on a quarter-on-quarter basis, supporting sentiment around its balance sheet momentum.

PC Jeweller jumped nearly 8% by midday to a fresh 52-week high after closing the October–December quarter of 2025–26 with a robust operating performance. Standalone revenue rose around 37% year on year, helped by sustained festival and wedding demand.

Punjab National Bank advanced roughly 2.3% to a new 52-week high following its October–December quarter of 2025–26 business update. The numbers were steady rather than eye-catching, yet they reinforced the lender’s ongoing recovery narrative.

The Ramco Cements rose about 3.% after receiving approval from the Andhra Pradesh government to include quartzite mineral in its existing limestone mining lease.

Ola Electric Mobility surged nearly 7% on January 5 to an intraday high of around ₹43, after the Bhavish Aggarwal-led company signalled a business turnaround in December 2025.

Amber Enterprises India climbed around 3% after announcing that its step-down subsidiaries had secured approval under the Electronics Components Manufacturing Scheme.

Futures & Options
Nifty January 2026 futures settled at 26,329, trading at a premium of 78.7 points to the Nifty 50’s cash close of 26,250.30. In the cash market, the Nifty 50 fell 78.25 points, or 0.30%, reflecting cautious sentiment.

India VIX rose sharply by 6.05% to 10.02, signalling higher near-term volatility expectations.

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

Bonds
Indian government bonds sold off sharply on Monday after states announced a record borrowing calendar, widening the gap between supply and demand in the market.

The benchmark 10-year yield settled at 6.6331%, up from 6.6062% on Friday, as prices fell in response to the heavy supply outlook.

States are set to raise ₹5 trillion between January and March, marking their largest quarterly borrowing on record. Bond supply pressure will be tested immediately, with states scheduled to auction ₹301 billion of bonds on Tuesday.

Forex
The Indian rupee edged lower on Monday, tracking weakness in Asian peers and facing dollar demand.

The currency closed at ₹90.2775 per dollar, compared with ₹90.1975 on Friday, marking its fourth consecutive decline. Trading was confined to a narrow 10-paisa range, while dollar-rupee forward premiums firmed after bottoming out in the previous session.

Traders said the pullback reflected underlying dollar demand following recent RBI intervention that had supported the rupee last week. Routine corporate dollar buying, coupled with limited exporter selling, kept the currency under pressure.

Crypto
The cryptocurrency market added about 3.6% over the past week and roughly 0.6% in the last 24 hours, taking total capitalisation to around $3.14 trillion. Early Monday trade saw a brief dip before prices returned to near monthly highs, drawing in local buyers and extending the year-to-date rebound.

Bitcoin moved above $92,000, marking a fifth straight day of gains and its highest level since December 12. The $92,000–95,000 zone previously triggered heavy selling and capped recovery attempts after the October–November decline. There is little evidence that underlying conditions have materially improved, with no clear shift towards faster economic growth or a more dovish monetary policy backdrop.

US Stock Futures
US stock futures traded higher on Monday as global markets reacted to the US attack on Venezuela and the capture of President Nicolás Maduro.

Dow Jones Industrial Average futures edged up 14 points, while S&P 500 futures gained 0.3%. Nasdaq-100 futures outperformed, rising 0.7%, supported by strength in technology stocks.

Oil majors rallied in premarket trade, with Chevron jumping 7% and Exxon Mobil up 4.2%. Halliburton surged about 9%, reflecting expectations of tighter energy dynamics. Technology shares also added support, with Nvidia rising around 1% and Micron Technology climbing 3.7%.

US Treasury Notes
US Treasury yields edged lower on Monday following the US attack on Venezuela over the weekend and the capture of President Nicolás Maduro.

The 10-year Treasury yield was down just over one basis point at 4.176%. The 2-year yield eased by less than one basis point to 3.463%, while the 30-year bond was largely unchanged at 4.857%.

Markets continued to assess the geopolitical fallout after US strikes on Venezuela and the transfer of Nicolás Maduro and his wife, Cilia Flores, to New York. Investor focus is also turning to upcoming US data, including December’s ISM manufacturing PMI, JOLTs job openings and weekly initial jobless claims, for fresh cues on growth and policy expectations.

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