Key Points
- Sensex tanked 780.18 points to 84,180.96, Nifty fell 263.9 points to 25,876.85
- Nifty Metal plunged 3.4%, Oil & Gas fell 2.84%, IT stocks down 1.99%
- Trump’s ‘Sanctioning Russia Act of 2025’ threatens 500% tariffs on countries buying Russian oil
- India imports over 30% crude from Russia, faces potential trade war with US
- FPIs withdrew Rs 7,608 crore in first two sessions of 2026, continuing 2025’s record selling
- Weak global cues from Japan, Hong Kong, and US markets added to negative sentiment
- Q3 earnings season beginning soon could provide market direction
The domestic stock market witnessed turmoil today, Thursday, January 8, as the decline on Dalal Street continued for the fourth consecutive day. The BSE Sensex opened down by approximately 200 points, and selling pressure gradually intensified throughout the session. By market close, the Sensex was trading at 84,180.96, down by 780.18 points or 0.92%. The Nifty also fell by 263.9 points, slipping to 25,876.85, below the crucial 26,000 mark.
Market breadth was overwhelmingly bearish, with 3,448 stocks declining out of 4,598 traded, indicating widespread selling pressure across sectors. The broader market suffered even more, with the Nifty Midcap 100 index tanking 1.96% and the Nifty Smallcap 100 index slipping 1.99%.
Oil And Metal Companies See Steepest Declines
Shares of oil and metal companies came under the most pressure, with Nifty Metal plunging 3.4% and Nifty Oil & Gas falling 2.84%. Hindalco shares fell by 3.77%, ONGC shares by 3.12%, and Jio Finance shares by 3%. The sectoral pain was broad-based, with Nifty PSU Bank down 2.08%, Nifty IT falling 1.99%, Nifty Realty declining 1.71%, and Nifty Pharma slipping 1.38%.
India has been a major buyer of Russian oil, accounting for more than 30% of its crude imports. Meanwhile, a new bill, the ‘Sanctioning Russia Act of 2025’, has been introduced in the US, which is being described as a major move by President Donald Trump. The bill aims to increase economic pressure on Russia by imposing heavy tariffs on countries that buy oil, gas, or other energy from Russia.
Who Will Be Harmed By Trump’s Tariff Threat?
Under this bill, heavy tariffs could be imposed on countries that buy oil, gas, or other energy from Russia. Reports suggest that the tariffs could be as high as 500%. This could primarily affect India, China, and Brazil. If the US implements a 500% tariff, it means that Indian exports to the US could face heavy taxes, making Indian products more expensive in the US and potentially harming trade.
However, the Indian government has not yet commented on this issue. Notably, India has been reducing its Russian oil imports since September 2025, with imports declining by over 18% between April and October 2025 compared to the previous year, following the US imposition of 25% tariffs in August last year.
Foreign Investors Also Contributing To The Downturn
In addition to trade concerns, the weak performance of other major global markets is also a contributing factor. Japan’s Nikkei 225 and Hong Kong’s Hang Seng are seeing significant declines. US markets also closed lower on Wednesday, with the S&P 500 declining 0.3% and the Dow Jones falling 0.94%. This indicates that global challenges are escalating.
The third major reason is the continuous selling of shares by foreign portfolio investors (FPIs). In the early days of January alone, foreign investors sold shares worth thousands of crores of rupees. In just the first two trading sessions of 2026, FPIs withdrew Rs 7,608 crore ($846 million) from Indian equities. On Wednesday, January 7 alone, FPIs net sold Indian equities worth Rs 1,528 crore.
This has put pressure on the Indian stock market and weakened investor sentiment. The sustained selling pressure by FPIs has also significantly contributed to the nearly 5% depreciation of the rupee against the dollar during 2025. The fresh pullout follows a steep exit in 2025, when FPIs sold Indian equities worth Rs 1.66 lakh crore ($18.9 billion), marking a record outflow.
Q3 Earnings Season May Change Market Sentiment
However, in a few days, Indian companies will begin releasing their third-quarter results, which could change the market sentiment. Domestic institutional investors (DIIs) have been providing some support, buying Indian equities worth Rs 2,889 crore on January 7, 2026. The upcoming earnings season will be closely watched by investors for signs of corporate health and potential market direction, especially after four consecutive sessions of decline that have seen the BSE Sensex shed more than 1,465 points.
