Equity benchmark indices, the Sensex and Nifty, experienced a decline in early trading on January 8, 2026, due to ongoing foreign fund outflows and worries regarding possible U.S. tariff increases. The 30-share BSE Sensex fell by 255.86 points, reaching 84,705.28, while the 50-share NSE Nifty dropped by 65.9 points, settling at 26,074.85. Among the major losers in the Sensex index were Tata Consultancy Services, Asian Paints, Maruti, Tech Mahindra, Infosys, and UltraTech Cement.
On January 7, 2026, several companies including ICICI Bank, Adani Ports, Bharat Electronics, and Hindustan Unilever experienced gains in the stock market. Foreign institutional investors sold equities amounting to ₹1,527.71 crore, whereas domestic institutional investors purchased stocks valued at ₹2,889.32 crore. According to V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, while the economy presents positive indicators with an expected FY26 GDP growth rate of 7.4%, these fundamentals may not be immediately reflected in the market. The anticipated U.S.-India trade deal, crucial for India’s economic growth and stability, has yet to materialize, and continued selling by foreign investors is exerting pressure on the market.
The Indian economy is projected to grow by 7.4% in the current fiscal year, retaining its position as the fastest-growing major economy globally, despite challenges such as punitive U.S. tariffs and geopolitical tensions. The Ministry of Statistics and Programme Implementation (MoSPI) released First Advance Estimates on January 7, 2026, indicating GDP growth for the fiscal year 2025-26 at 7.4%, surpassing the Reserve Bank of India’s (RBI) forecast of 7.3% and the government’s initial projection of 6.3-6.8%. Market sentiment is described as cautious, as both Nifty and Bank Nifty indices are facing significant overhead resistance while still holding vital support levels, influenced by ongoing geopolitical issues, tariff concerns, and noted foreign portfolio outflows, according to Ponmudi R, CEO of Enrich Money.
In Asian markets on January 7, 2026, South Korea’s Kospi and Shanghai’s SSE Composite indices showed gains, whereas Japan’s Nikkei 225 and Hong Kong’s Hang Seng indices experienced losses. U.S. markets mostly ended lower on the same day. The global oil benchmark, Brent crude, saw a modest increase of 0.40%, reaching $60.20 per barrel. Additionally, in India, the Sensex fell by 102.20 points (0.12%), closing at 84,961.14, while the Nifty Index decreased by 37.95 points (0.14%) to settle at 26,140.75.
