CHENNAI: Indian equity markets closed the trading session on Thursday, January 8, 2026, with benchmark indices sliding further into negative territory, extending a sequence of losses that has gripped Dalal Street amid persistent risk-off sentiment.
The BSE Sensex finished sharply lower, settling around 84,180 at the close, down roughly 780 points, while the NSE Nifty 50 mirrored the weakness, ending the day below the 26,000 mark after broad-based selling pressured stocks across key sectors. The downturn marked the fourth consecutive session of declines for both indices, as investors reacted to mixed global cues, concerns over potential trade tensions and continued foreign institutional investor outflows.
Trading was dominated by widespread weakness, with metal, banking, information technology and pharmaceutical stocks among the heaviest laggards. The market’s breadth remained subdued, with far more losers than gainers, reflecting a cautious mood and selective risk appetite among participants. Broader mid-cap and small-cap segments also closed lower, contributing to the overarching negative trend.
Market analysts pointed to a combination of external and domestic factors weighing on sentiment. Globally, heightened uncertainty around trade policy and macroeconomic developments kept traders cautious, while domestically, the absence of strong catalysts ahead of key economic data releases and the forthcoming earnings season dampened enthusiasm. Foreign investors continued to withdraw funds from Indian equities, amplifying selling pressure, even as some domestic institutional buyers stepped in selectively.
"The investor sentiment was dented after reports that US President Donald Trump approved a new bill proposing steep tariffs of up to 500% on countries purchasing crude oil from Russia, raising concerns over domestic growth and broader market stability," said R Ponmudi, CEO of Enrich Money, a leading brokerage and wealth management firm.
According to him, the development heightened global risk aversion, weighed on investor sentiment, and triggered widespread selling across sectors, dragging the benchmarks decisively lower by the close. Metal and oil-related stocks bore the brunt of the sell-off, as fears of export disruptions, pricing volatility, and elevated trade risks weighed heavily on sectoral performance and broader market confidence, he said.
Technically, the failure of the Nifty to reclaim the 26,000–26,100 zone on a sustained basis heightened bearish undertones, and key support levels were tested during the session. Although a few stocks managed modest recoveries in the final hour of trade, the overall trend remained weak, with market participants positioning defensively in anticipation of further volatility.
The close on Thursday underscored a cautious start to trading for the first full week of the year, with the market digesting recent gains and recalibrating in response to evolving global and domestic cues. Investors were left watching closely for fresh triggers that could influence direction in the coming sessions, especially as macroeconomic data and corporate earnings begin to shape sentiment more definitively.