Sensex, Nifty extend losses into 3rd session on geopolitical concerns, trade uncertainties

Mumbai, Jan 7 (PTI) Stock market benchmark indices Sensex and Nifty drifted lower for the third day in a row on Wednesday as geopolitical tensions and renewed concerns about potential US tariff hikes weighed on investor sentiment.

Sustained foreign fund outflows also dragged the markets lower, traders said.

However, buying on select blue-chip counters and lower crude prices in the international market supported equities, they added.

In a volatile trade, the 30-share BSE Sensex declined 102.20 points or 0.12 per cent to settle at 84,961.14. During the day, it dropped 445.85 points or 0.52 per cent to 84,617.49.

The 50-share NSE Nifty went down by 37.95 points, or 0.14 per cent, to 26,140.75.

"Market sentiment continued to be shaped by mixed global cues and lingering geopolitical concerns, which kept risk appetite in check. In addition, rotational selling in select index heavyweights, such as ITC, HDFC Bank and Reliance, capped the upside and restrained the broader uptrend.

"In the absence of strong domestic triggers, trading activity remained largely stock-specific, with participants adopting a wait-and-watch approach ahead of upcoming earnings announcements and key macro developments," Ajit Mishra, SVP, Research, Religare Broking Ltd, said.

From the 30-Sensex firms, Maruti, Power Grid, Tata Motors Passenger Vehicles, HDFC Bank, Asian Paints and Tata Steel were among the biggest laggards.

However, Titan, HCL Tech, Tech Mahindra, Infosys and Tata Consultancy Services were among the gainers.

The BSE midcap gauge climbed 0.47 per cent, and the smallcap index went up by 0.12 per cent.

Among sectoral indices, BSE utilities declined by 0.80 per cent, oil & gas (0.76 per cent), auto (0.68 per cent), telecommunication (0.61 per cent) and realty (0.39 per cent).

However, BSE Focused IT jumped 2.52 per cent, IT climbed 1.97 per cent, consumer durables (1.25 per cent), healthcare (0.42 per cent) and capital goods (0.41 per cent).

"Indian equity markets ended today’s session on a subdued and cautious note, with investors adopting a selective approach amid mixed domestic and global cues. Elevated geopolitical tensions and renewed tariff-related concerns continued to cap risk appetite and deter aggressive positioning," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Brent crude, the global oil benchmark, declined 0.81 per cent to USD 60.21 per barrel.

Foreign institutional investors offloaded equities worth Rs 107.63 crore on Tuesday, according to exchange data. Domestic institutional investors, however, bought stocks worth Rs 1,749.35 crore.

"Domestic market sentiment remains cautious with risk-off undertones ahead of Q3 FY26 earnings and key US jobs data. While QoQ corporate earnings are expected to improve, FIIs remain risk-averse amid global trade uncertainty," Vinod Nair, Head of Research, Geojit Investments Limited, said.

In Asian markets, South Korea's Kospi index and Shanghai's SSE Composite index settled higher, while Japan's Nikkei 225 index and Hong Kong's Hang Seng index ended lower.

Markets in Europe were trading mostly lower.

US markets ended higher on Tuesday.

The Indian economy is likely to grow at 7.4 per cent in 2025-26, up from 6.5 per cent in the previous fiscal, mainly on account of better performance of manufacturing and services sectors, according to the Ministry of Statistics & Programme Implementation data released on Wednesday after market hours.

On Tuesday, the Sensex dropped 376.28 points, or 0.44 per cent, to settle at 85,063.34. The Nifty declined 71.60 points, or 0.27 per cent, to end at 26,178.70. PTI SUM SUM BAL BAL