Last Updated on January 8, 2026 10:33 pm by INDIAN AWAAZ
AMN / BIZ DESK
Indian equity markets witnessed a sharp sell-off on Thursday, with benchmark indices posting their steepest single-day decline in over four months. The Nifty 50 slipped decisively below the psychologically crucial 26,000 mark as global and domestic sentiment weakened following reports that US President Donald Trump has approved legislation proposing a punitive 500 per cent tariff on countries importing Russian oil.
The BSE Sensex closed 780.18 points, or 0.92 per cent, lower at 84,180.96, while the Nifty 50 declined 263.90 points, or 1.01 per cent, to settle at 25,876.85. This marked the fourth consecutive session of losses for the Nifty, reflecting sustained risk aversion among investors.
Market participants reacted nervously to the escalation in tariff-related tensions between India and the United States. According to market experts, the proposed legislation—authored by US Senator Lindsey Graham—aims to squeeze Russia’s energy revenues but could have far-reaching implications for major importers like India, which has significantly ramped up purchases of discounted Russian crude since the Ukraine conflict began. Concerns over potential secondary sanctions and higher trade barriers weighed heavily on equities.
Sector-wise performance
- Metals: The worst-hit sector, with the Nifty Metal index plunging 3.4 per cent amid weak global commodity prices and fears of slowing demand. Stocks such as Hindalco, Tata Steel and JSW Steel saw sharp cuts.
- Oil & Gas: Shares declined on worries that tariff action could disrupt crude supply dynamics and impact margins. ONGC and other upstream players ended deep in the red.
- IT: Technology stocks remained under pressure due to global risk-off sentiment and concerns over US demand. Wipro and Tech Mahindra were among notable laggards.
- Financials: Banking and financial stocks showed relative resilience but still closed lower. The Nifty Bank fell 0.51 per cent, while select large-cap names like ICICI Bank and SBI Life managed marginal gains.
- Autos & FMCG: These sectors saw moderate declines as investors cut exposure across the board, though defensive buying limited deeper losses.
Market breadth was decisively negative, with over three times as many stocks declining as advancing on the BSE. Broader indices fared worse than benchmarks, as the Nifty Midcap 100 and Nifty Smallcap 100 fell nearly 2 per cent each, highlighting heavy selling in riskier segments.
The rupee weakened to 89.93 against the US dollar amid renewed foreign fund outflows, adding to pressure on domestic assets. Meanwhile, gold prices on MCX declined sharply due to currency volatility.
Outlook
Analysts expect markets to remain volatile in the near term, driven by geopolitical uncertainty, tariff-related risks and global cues. However, hopes of an improvement in corporate earnings in the coming quarters could offer some support once near-term uncertainties ease.