Stock markets decline for 3rd day on geopolitical concerns, fresh tariff hike threats

Stock market benchmark indices Sensex and Nifty drifted lower for the third day in a row on Wednesday (January 7, 2026) as geopolitical tensions and renewed concerns about potential U.S. tariff hikes weighed on investor sentiment.

Sustained foreign fund outflows also dragged the markets lower.

The 30-share BSE Sensex declined 102.20 points or 0.12% to settle at 84,961.14. During the day, it dropped 445.85 points or 0.52% to 84,617.49.

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

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.

“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.

Foreign institutional investors offloaded equities worth ₹107.63 crore on Tuesday (January 6), according to exchange data. Domestic institutional investors, however, bought stocks worth ₹1,749.35 crore.

“Domestic market sentiment remains cautious with risk-off undertones ahead of Q3 FY26 earnings and key U.S. 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.

U.S. markets ended higher on Tuesday (January 6).

Brent crude, the global oil benchmark, declined 0.81% to $60.21 per barrel.

On Tuesday (January 6), the Sensex dropped 376.28 points, or 0.44%, to settle at 85,063.34. The Nifty declined 71.60 points, or 0.27%, to end at 26,178.70.