Frontline indices, the Sensex and the Nifty 50, extended losses for the second consecutive session on Tuesday, January 6, on profit booking despite positive global cues.
The Sensex declined over 500 points, or more than 0.60%, to an intraday low of 84,900.10. The NSE counterpart Nifty 50 dropped by 0.50% to an intraday low of 26,124.75. However, the indices pared some losses, as the Sensex ended with a loss of 376 points, or 0.44%, at 85,063.34, while the Nifty 50 settled at 26,178.70, down 72 points, or 0.27%.
The BSE Midcap and Smallcap indices lost 0.24% and 0.39%, respectively.
The overall market capitalisation of BSE-listed firms dropped to ₹479 crore from nearly ₹481 lakh crore in the previous session, making investors richer by about ₹2 lakh crore in a single session.
What drove the Indian stock market down?
Foreign capital outflow
The continuous selloff of Indian stocks by foreign institutional investors (FIIs) keeps market sentiment weak.
Caution ahead of Q3 earnings
The Q3FY26 earnings season has started with some small companies ready to disclose their December-quarter numbers on January 6.
Fresh tariff warnings from Trump
US President Donald Trump has issued a fresh warning regarding tariffs on India for importing Russian oil.
According to media reports, Trump has warned that Washington can raise tariffs on India due to Russian oil purchases.
Trump, on 5 January, speaking to reporters, said, “We could raise tariffs on India if they don’t help on the Russian oil issue”.
“Trump has indicated that fresh tariffs on India are possible, which has unsettled markets. Earlier, there was optimism that India would be among the first countries to sign a trade agreement with the US, but recent comments have reintroduced uncertainty,” said Vijayakumar.
