Market Wrap

Nifty Slide Over 1% on Tariff Fears, Log Worst Session in Four Months

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

India Stocks fall

By Dehuti Jani

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

January 8, 2026 at 11:43 AM IST

Indian equity indices recorded their steepest single-day decline in over four months on Thursday, extending losses to a fourth consecutive session as uncertainty over potential US tariffs triggered broad-based selling. The Nifty50 fell 1.01% to close at 25,876.85, while the BSE Sensex declined 0.92% to 84,180.96, shedding more than 800 points intraday. Investor sentiment turned sharply risk-averse following reports that the Donald Trump administration could impose tariffs of up to 500% on Indian goods, adding to existing trade tensions between New Delhi and Washington.

Selling pressure was widespread, with all 16 major sectoral indices ending in the red. Metals led the losses, with the Nifty Metal index down over 3%, followed by Oil & Gas down 2.8%, PSU Banks down 2% and IT down 1.99%. Heavyweight stocks such as Reliance Industries, TCS, Tech Mahindra, L&T and Tata Steel were among the top laggards, while only a handful of stocks including Eternal, ICICI Bank, Bajaj Finance and BEL managed to close higher. Broader markets bore the brunt of the sell-off, with the Nifty Midcap 100 and Smallcap 100 indices plunging nearly 2% each.

Foreign portfolio investors have sold about $900 million worth of Indian equities so far in January, after record outflows of $19 billion in 2025, underscoring persistent concerns around global trade risks, geopolitical tensions and fragile risk appetite.

Top Movers of the Day
Reliance Industries fell 2% to ₹1,469 on the BSE, extending its four-day slide to about 8% and nearly 9% from its record high of ₹1,611.20. The stock’s decline has erased close to ₹2,000 billion in market capitalisation amid heavy volumes.

Granules India gained after its US arm received tentative FDA approval for generic amphetamine extended-release tablets for ADHD, with 180-day exclusivity eligibility supporting sentiment.

Balaji Amines jumped over 13% to ₹1,212.50 after receiving incentives worth ₹2.58 billion to expand its Solapur unit, marking its highest level since November 2025.

Oil marketing companies came under sharp pressure on tariff concerns, with BPCL dropping up to 4.35%, IOC down 3.3% and HPCL sliding 4.9%.

DEE Development Engineers surged up to 13.11% to ₹236 after announcing a strong order book update and the appointment of a new CFO.

Larsen & Toubro advanced after securing a defence supply order from the Indian Army for overhaul, upgrade and long-term maintenance of Pinaka multi-rocket launcher systems.

Metal stocks slipped up to 6% on profit booking, with Hindustan Zinc and NALCO down about 6% each, while Vedanta, Hindalco, JSW Steel, NMDC and Hindustan Copper fell 4–5%.

Gokaldas Exports plunged 13% to an over 28-month low of ₹597 amid growth concerns linked to tariff uncertainty; the stock is down about 46% over the past year.

Angel One traded 1.1% lower despite reporting a 1.8% month-on-month rise in client base to 35.71 million, up 21% year-on-year.

Futures & Options
Nifty January 2026 futures closed at 25,965, commanding a premium of 88.15 points over the Nifty’s cash market close of 25,876.85. The NSE India VIX, a measure of near-term volatility expectations, surged 6.53% to 10.60, indicating heightened nervousness among traders. HDFC Bank, TCS and ICICI Bank emerged as the most actively traded single-stock futures in the F&O segment. The January 2026 derivatives contracts are scheduled to expire on 27 January 2026.

Bonds
The yield on India’s benchmark 10-year government bond inched higher, ending at 6.6290%, up from around 6.61% in the previous session, as caution prevailed in the debt market. Yields across the curve remained range-bound, spanning short-term Treasury bills to long-dated securities, amid persistent liquidity tightness in the banking system. Market sentiment stayed subdued ahead of fresh debt supply, with the government scheduled to auction ₹320 billion of bonds on Friday.

Forex
The rupee closed weaker on Thursday after a volatile session, as concerns over potential US tariffs and equity outflows outweighed fresh intervention by the Reserve Bank of India. The rupee opened at 89.95 and briefly strengthened to 89.75 following RBI dollar sales for a second straight day, but renewed demand for the greenback later in the session dragged the currency lower. It finally settled at 90.0175 per US dollar, reversing from Wednesday’s close of 89.88.

Crypto
The cryptocurrency market slipped into a mild correction after a strong start to the week, with total market capitalisation down about 1–1.2% to around $3.17 trillion as traders booked profits. Bitcoin faced renewed selling pressure after failing for a third time in five weeks to break the key $94,000–$94,500 resistance zone, sliding towards the $91,500 level during the Asia session before stabilising. Ethereum showed relative resilience, holding above $3,100, though it snapped a six-day winning streak by printing its first red candle in a week.

US Stock Futures
US stock futures edged lower on Thursday after a choppy session that snapped multi-day rallies across major indices, as investors balanced strong services-sector activity against emerging signs of a cooling labour market. Futures on the Dow Jones Industrial Average and the S&P 500 slipped about 0.2%, while Nasdaq 100 futures fell around 0.3%, paring deeper losses seen earlier in the session. Despite the pullback, broader sentiment remains relatively resilient, though persistent geopolitical tensions continue to keep investors cautious about potential volatility ahead.

US Treasury Notes
US Treasury traded mixed on Thursday, with the benchmark 10-year note easing to around 4.16% as investors reacted to signs of a cooling labour market. Shorter-dated yields were largely steady, with the 2-year holding near 3.46%, while the long end saw marginal firmness in 30-year bond yields. Market sentiment remained cautious ahead of key upcoming jobs data, with traders continuing to price in expectations that the Federal Reserve will keep interest rates on hold in the near term.

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