Indian stock markets ended lower for the second day in a row on Tuesday, January 6, as investors booked profits and stayed cautious despite positive signals from global markets.
The Sensex closed 376 points, or 0.44 percent, lower at 85,063.34. The Nifty 50 slipped 72 points, or 0.27 percent, to finish at 26,178.70, falling below the 26,200 mark.
During the day, selling pressure was sharper. The Sensex fell more than 500 points to an intraday low of 84,900.10, while the Nifty dropped to 26,124.75. Both indices recovered part of their losses by the close.
Broader markets also weakened. The BSE Midcap index fell 0.24 percent and the Smallcap index declined 0.39 percent.
The total market value of BSE-listed companies fell to about ₹479 lakh crore from nearly ₹481 lakh crore in the previous session, wiping out close to ₹2 lakh crore of investor wealth in a single day.
This decline came even as Asian markets were largely positive. Japan’s Nikkei, South Korea’s Kospi and China’s Shanghai Composite index all rose more than 1 percent.
1. Heavyweight stocks dragged the indices
Shares of Reliance Industries and HDFC Bank, two of the biggest index stocks, were the main drags. Reliance shares fell as much as 5 percent during the day, while HDFC Bank dropped over 2 percent. Their sharp losses pulled both the Sensex and the Nifty lower.
Reliance has been under pressure amid developments linked to the US–Venezuela situation, while HDFC Bank slipped after it released its December-quarter business update.
2. Continued foreign investor selling
Foreign institutional investors have been selling Indian shares steadily, keeping market sentiment weak. Since July 2025, foreign investors have sold Indian equities worth about ₹1.85 lakh crore in the cash market. In the first three trading sessions of January alone, selling has crossed ₹3,000 crore.
Market experts say foreign investors remain cautious due to India’s recent market under-performance and relatively high valuations.
3. Caution ahead of quarterly results
The December-quarter earnings season has begun, and investors are waiting to see whether company results show a clear improvement. Big names such as Avenue Supermarts (DMart), TCS and HCL Tech are set to announce results later this month.
With corporate earnings largely weak since mid-2024, investors are avoiding aggressive bets until results offer more clarity.
4. Fresh tariff warning from Trump
US President Donald Trump has warned that the US could raise tariffs on India over its imports of Russian oil. His comments have added uncertainty, especially after earlier hopes of a quick trade deal between India and the US.
5. Geopolitical concerns
While the US–Venezuela conflict is not seen as a direct threat to Indian markets, investors are worried about the risk of further escalation. This has led many to cut exposure to riskier stocks and move towards safer assets.
Overall, caution, heavy selling in key stocks and global uncertainty kept Indian markets under pressure despite positive cues from abroad.
(By arrangement with livemint.com)
