Indian stock markets fell sharply on January 8, 2026, with Sensex dropping 780 points and Nifty falling 264 points amid global and trade concerns. Read the full analysis of today’s market decline and sector-wise impact.
New Delhi: The Indian stock market faced a sharp downturn on Thursday, marking its fourth consecutive session of losses and the steepest single-day fall in over four months. Renewed US tariff threats, geopolitical tensions, and foreign fund outflows weighed heavily on investor sentiment, pushing markets lower.
The benchmark BSE Sensex opened lower at 84,778.02, down 183.12 points, and slid further during the day to an intraday low of 84,110.10, plummeting 851.04 points (1%). It finally closed at 84,180.96, down 780.18 points (0.92%). Similarly, the NSE Nifty 50 started at 26,106.50, down 34.25 points, and hit an intraday low below 25,900, falling up to 282 points. The index ended the day at 25,876.85, down 263.90 points (1.01%), decisively slipping below the key 25,900 level.
This decline erased approximately Rs 7-8 lakh crore from the market capitalization of BSE-listed companies, reflecting broad-based selling pressure. Over the past four trading days, the Sensex has lost more than 1,465 points, while the Nifty has dropped around 1.7%.
Sectoral indices bore the brunt of the decline, with metals and IT stocks leading the downturn. The Nifty Metal index plunged up to 8% amid weaker global commodity prices, while IT stocks came under pressure ahead of quarterly earnings announcements. Other sectors also recorded notable losses, including Oil & Gas (down 1.8%), Realty (down 2.5%), and PSU Banks (down 1.3%). Broader market segments followed the trend, with the Nifty Midcap 100 down 1.2% and the Nifty Smallcap 100 down 1.5%.
Among the top losers on the Sensex were Larsen & Toubro (down 3%), Tech Mahindra (down 3%), Tata Steel (down 4%), JSW Steel (down 5%), and Hindalco (down 4%). Adani Ports fell 2.5%, TCS 1.8%, and Infosys 1.5%. On the upside, limited gains in HDFC Bank (up 0.5%), ICICI Bank (up 0.3%), and Reliance Industries (up 0.2%) provided some support but could not offset the broad market decline.
The main trigger for the sell-off was growing concern over US trade policies under incoming President Donald Trump. Reports highlighted Trump’s support for a bill imposing 500% tariffs on countries buying Russian oil, which could affect India as one of the largest importers of discounted Russian crude. In addition, the US is reportedly considering up to 500% tariffs on Indian goods next week, tied to a new law targeting trade relations with Russia.
Geopolitical risks further contributed to the decline, with ongoing tensions in the Middle East and the Ukraine-Russia conflict adding to global risk aversion. Foreign institutional investors (FIIs) exacerbated the fall by offloading equities worth Rs 4,500 crore on January 8, amid rising US bond yields and a strengthening dollar.
Global cues also played a significant role, as Asian equities extended declines for the second session following weak US economic data, including softer job additions. Wall Street ended mixed overnight, with the Dow Jones down 0.3%, while European markets traded lower. Falling commodity prices, especially metals like steel and aluminum, added pressure on related Indian stocks.
From a technical perspective, analysts at SBI Securities noted Nifty’s close below 25,900 as a “decisive breakdown,” signaling potential further downside with support levels at 25,700-25,800. There were no major domestic positives, such as policy reforms or strong economic indicators, to counter these headwinds.
Looking ahead, Nifty futures indicated a flat opening for January 9, 2026, at around 25,969.50. Market participants anticipate continued volatility, driven by upcoming Q3 corporate earnings, US inflation reports, and developments on the tariff front. This downturn underscores the vulnerability of emerging markets to global trade uncertainties in the current economic environment.
Aniket Sardana