New Delhi [India], January 8 : Indian stock benchmarks settled in the red for the fourth consecutive session on Thursday, weighed down by persistent weak sentiment among investors due to US tariffs and foreign investment outflows.
Sensex closed at 84,180.96 points, down 780.18 points or 0.92 per cent, while Nifty closed at 25,876.85 points, down 263.90 or 1.01 per cent.
Broad-based selling was led by metals, oil and gas, and IT stocks.
Vinod Nair, Head of Research, Geojit Investments Limited said domestic markets extended losses as sentiment turned cautious amid renewed concerns over US tariffs and persistent FII outflows, overshadowing optimism around earnings growth.
Metal shares declined on profit booking following a retreat in global prices, while oil and gas stocks fell on worries over the Venezuela-US crisis.
India's first advance 2025-26 GDP estimate have signaled robust growth, driven by a manufacturing rebound and resilient services, offering some optimism despite external headwinds.
"In the near term, markets are expected to remain cautious and trade range-bound, influenced by Q3 earnings and developments on US tariffs," Vinod Nair added.
Rupak De, Senior Technical Analyst at LKP Securities, said a rising India VIX is also pointing to increased panic among market participants.
"Overall, the setup looks uncomfortable for the bulls. Selling pressure is likely to persist in the near term unless the Nifty moves back above 26,000. On the downside, the index might fall down towards 25,700 and 25,550," Rupak De said.
According to Ponmudi R, CEO of Enrich Money, a SEBI - registered online trading and wealth tech firm, Indian equity markets ended sharply lower as investor confidence weakened amid renewed uncertainty on the global trade front.
"Sentiment was dented after reports that US President Donald Trump approved a new bill proposing steep tariffs of up to 500 per cent on countries purchasing crude oil from Russia, raising concerns over domestic growth and broader market stability. The development heightened global risk aversion, weighed on investor sentiment, and triggered widespread selling across sectors, dragging the benchmarks decisively lower by the close," Ponmudi R said. Metal and oil-related stocks bore the brunt of the sell-off, as fears of export disruptions, pricing volatility, and elevated trade risks weighed heavily on sectoral performance and broader market confidence.
Sensex and Nifty cumulatively rose 8-10 per cent in 2025, lower than the recent-year trends.
Market participants remained cautious, with experts pointing to low foreign investor participation. Foreign portfolio investors remained net sellers in India in 2025, data showed. Overall, Indian equity markets had largely been choppy over the past months, barring some bullish days, as investors remained uncertain over the trade deal with the United States, which has imposed a 50 per cent tariff on Indian goods.
In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, the indices gained a mere 3 per cent each.