Last Updated on January 14, 2026 12:02 am by INDIAN AWAAZ
The Sensex and Nifty are down nearly 2 per cent so far in 2026, following gains of 8–10 per cent in 2025, a slower pace compared to previous years. Market volatility has remained elevated due to low foreign investor participation and uncertainty surrounding trade relations.
AMN / BIZ DESK
Domestic equity benchmarks closed marginally in the red on Tuesday as cautious investor sentiment, profit booking, and global uncertainties offset early gains. The BSE Sensex fell 250 points (0.30%) to settle at 83,627, while the NSE Nifty 50 slipped 58 points (0.22%) to close at 25,732.
Markets opened on a positive note, supported by encouraging signals from the IT earnings season and optimism around progress in India–US trade talks. However, the rally lacked momentum as selling pressure emerged in heavyweight stocks across sectors. Persistent geopolitical tensions and uncertainty over global trade policies kept risk appetite subdued, resulting in largely stock-specific moves.
Investor confidence weakened further amid concerns over potential US tariffs on countries trading with Iran, which overshadowed positive comments by the newly appointed US ambassador regarding bilateral trade. Additional headwinds included a weakening rupee, rising crude oil prices, elevated US bond yields, and continued foreign institutional investor (FII) outflows.
On the macroeconomic front, India’s December CPI inflation remained within the RBI’s comfort range, strengthening expectations of rate cuts later in the year. However, the Q3 earnings season started on a muted note, with mixed results from key corporates, prompting investors to book profits after recent gains.
Sector-Wise Performance
- Information Technology: IT stocks initially outperformed on selective earnings optimism but later gave up gains as cautious outlooks from large players tempered enthusiasm. The sector remained volatile.
- Banking & Financials: Major private banks and financial stocks saw mild selling due to profit booking, while PSU banks traded mixed amid valuation concerns.
- Oil & Gas: Rising global crude prices weighed on downstream companies, while upstream stocks remained range-bound.
- Metals: Metal stocks faced pressure due to concerns over global demand and trade-related uncertainties.
- FMCG: Defensive FMCG stocks provided limited support to the indices as investors sought relative stability.
- Pharma & Healthcare: The sector traded mixed, supported by selective buying in export-oriented names.
- Midcaps & Smallcaps: Small-cap stocks outperformed, posting noticeable gains as investors selectively rotated into high-growth counters.
Market Trend and Outlook
The Sensex and Nifty are down nearly 2 per cent so far in 2026, following gains of 8–10 per cent in 2025, a slower pace compared to previous years. Market volatility has remained elevated due to low foreign investor participation and uncertainty surrounding trade relations.
Foreign portfolio investors were net sellers throughout 2025, and equity markets have largely remained choppy in recent months, interrupted only by occasional bullish sessions. The ongoing uncertainty over the India–US trade agreement, under which the US has imposed a 50 per cent tariff on Indian goods, continues to weigh on investor sentiment.
Historically, benchmark indices gained 9–10 per cent in 2024, 16–17 per cent in 2023, and around 3 per cent in 2022, highlighting a clear moderation in returns as global and domestic challenges intensify.