Stock markets extend losses for 2nd day; Sensex drops 245 points
Equity benchmark indices Sensex and Nifty declined on Wednesday, extending their previous day’s losses, due to weakness in IT, consumption, and select banking blue-chip stocks amid escalating geopolitical tensions.
Besides, persistent foreign fund outflows and fresh tariff-related uncertainties also unnerved investors, traders said. The 30-share BSE Sensex dropped 244.98 points, or 0.29 per cent, to settle at 83,382.71. During the day, it fell 442.49 points or 0.52 per cent to 83,185.20.
The 50-share NSE Nifty declined 66.70 points, or 0.26 per cent, to 25,665.60. Selective buying in markets and investors’ interest in metals, commodities, and energy stocks provided limited support to indices.
“Indian benchmark indices ended the session with marginal losses amid heightened volatility. The market witnessed selling pressure in the second half of the day, largely driven by continued FII outflows and uncertainty surrounding the US trade deal, which kept investor sentiment cautious,” according to Bajaj Broking Research.
From the 30-Sensex firms, Tata Consultancy Services, Asian Paints, Maruti, Sun Pharma, Hindustan Unilever, ICICI Bank, Kotak Mahindra Bank, Tech Mahindra, HDFC Bank and Larsen & Toubro were among the biggest laggards. On the other hand, Tata Steel, NTPC, Axis Bank and UltraTech Cement were among the gainers.
Investors remained hesitant amid mixed global cues and lingering geopolitical concerns. Overall sentiment was cautious to negative, with consolidation likely to persist as traders weigh FII outflows, global tariff pressures, and near-term technical supports, said Aakash Shah, Technical Research Analyst at Choice Equity Broking Private Limited.
The BSE smallcap gauge climbed 0.25 per cent, and the midcap index went up by 0.16 per cent. Among sectoral indices, BSE Focused IT dropped 1.30 per cent, realty (0.98 per cent), consumer durables (0.96 per cent), IT (0.96 per cent), auto (0.62 per cent), FMCG (0.53 per cent) and consumer discretionary (0.42 per cent).
Metal jumped 2.67 per cent, PSU Bank (2.43 per cent), commodities (1.59 per cent), telecommunication (0.76 per cent) and energy (0.64 per cent). “Sentiment remained cautious amid persistent FII outflows and continued uncertainty around the US-India trade deal.
Investors also stayed wary ahead of the US Supreme Court’s likely ruling today on the legality of tariffs imposed by the Trump administration,” Siddhartha Khemka — Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said. Foreign institutional investors offloaded equities worth INR 1,499.81 crore on Tuesday, and Domestic Institutional Investors (DIIs) bought stocks worth INR 1,181.78 crore, according to exchange data. In Asian markets, South Korea’s Kospi index, Japan’s Nikkei 225 index and Hong Kong’s Hang Seng index settled higher, while Shanghai’s SSE Composite index ended lower. Markets in Europe were quoting higher. US markets ended lower on Tuesday. Brent crude, the global oil benchmark, declined 0.99 per cent to USD 64.82 per barrel. On Tuesday, the Sensex dropped 250.48 points or 0.30 per cent to settle at 83,627.69. The Nifty edged lower by 57.95 points or 0.22 per cent to 25,732.30. Stock markets will remain closed on Thursday on account of the Maharashtra civic polls.
In a circular on Monday, the National Stock Exchange (NSE), “notified Thursday, January 15, 2026, as a trading holiday in the capital market segment on account of Municipal Corporation Election in Maharashtra”.
Markets are expected to trade sideways, with investors looking at ongoing earnings, developments on the India-US trade deal front, and cues on the upcoming Budget, said Khemka.
