Sensex Falls 400 Points, Nifty Near 25,750 Amid US Tariff Fears and FII Outflows
Mumbai, Jan 9, 2026: The benchmark equity indices, Sensex and Nifty, extended losses for the fifth consecutive session on Friday, weighed down by renewed concerns over US tariffs and sustained foreign fund outflows.
After a brief rebound in early trade, the Sensex dropped 400.71 points (0.48%) to 83,780.25, while the Nifty fell 113.70 points (0.44%) to 25,763.15 at around 11:40 a.m.
Investor sentiment remained cautious following a sharp sell-off in the previous session, as global trade uncertainties continued to pressure the market.
Sector and Stock Movers
Among Nifty50 constituents, ICICI Bank, Adani Enterprises, and Adani Ports & SEZ were major laggards, falling up to 2%, while ETERNAL and ONGC were the top gainers, rising up to 3%. Market breadth was negative with 1,959 shares declining, 1,349 advancing, and 175 unchanged.
Key Factors Behind the Market Decline
1. Persistent FII Selling
Foreign institutional investors (FIIs) sold equities worth Rs 3,367.12 crore on Thursday, marking their fourth consecutive session of net selling after a brief pause on January 2.
2. Caution Ahead of US Supreme Court Verdict
Investors are closely monitoring the US Supreme Court ruling on the legality of tariffs imposed by former President Donald Trump. If struck down, the US may be required to refund nearly USD 150 billion to importers.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said,
“The market is focused on the Supreme Court verdict on Trump tariffs. While the probability is high that the ruling may go against Trump, details matter—whether it’s a partial or full strike-down. If declared illegal, India could see a rally since it has been one of the worst-affected countries by the 50% tariffs.”
3. Renewed Tariff Concerns
The markets have fallen sharply after Trump hinted at raising tariffs on Indian goods linked to New Delhi’s Russian crude imports. Over the last four sessions, the Sensex and Nifty have declined 1.8% and 1.7%, respectively.
Trump recently approved a Russia sanctions bill that could impose up to 500% tariffs on countries importing Russian oil. US Senator Lindsey Graham noted that the bill gives the US “tremendous leverage” to influence countries like India, China, and Brazil.
Ponmudi R, CEO of Enrich Money, said,
“Persistent concerns over potential US tariff actions on India’s Russian oil imports are keeping sentiment fragile, while the lack of visible progress in US–India trade discussions is reinforcing institutional caution.”
4. Rising Crude Prices
Brent crude rose 0.53% to USD 62.32 per barrel. Higher crude prices increase India’s import bill and inflation risks, putting additional pressure on equities.
5. Rupee Weakness
The Indian rupee slipped 7 paise to 89.97/USD amid FII outflows and rising crude prices. Forex traders cited concerns over potential US tariffs and weak domestic equities as key reasons for continued pressure on the currency.
Technical Outlook
Devarsh Vakil, Head of Prime Research at HDFC Securities, said the Nifty breached key support levels:
“The Nifty broke its 50-day exponential moving average at 25,911 and violated the previous swing low of 25,878. The next meaningful support is near 25,700, coinciding with the December 2025 swing low. On the upside, the 26,000–26,050 zone is expected to act as strong resistance in the near term.”
Market Summary
Sensex: 83,780.25 (-400.71 pts / -0.48%)
Nifty: 25,763.15 (-113.70 pts / -0.44%)
Top Gainers: ETERNAL, ONGC
Top Losers: ICICI Bank, Adani Enterprises, Adani Ports & SEZ
The market remains volatile, with global trade concerns, tariff uncertainties, and crude price movements continuing to influence investor sentiment.
