CHENNAI: The Indian equity markets were trading cautiously around midday on Wednesday, with both major benchmarks extending recent weakness amid lingering geopolitical concerns and renewed anxiety over potential tariff actions shaping global trade dynamics. By late morning, the BSE Sensex was trading lower and the NSE Nifty 50 had slipped below key psychological zones as investors grappled with mixed signals from domestic and international cues.
The Sensex was down by over 200 points and the Nifty 50 index had declined nearly 70 points from previous levels, underscoring a cautious mood that has persisted for a third straight session. The broader indices reflected similar caution, with midcap and smallcap segments showing modest gains while heavyweight stocks largely lagged.
Selling pressure in financials, auto and private bank stocks contrasted with pockets of strength in technology and select commodity names, where sectoral gains helped stem deeper losses. Stocks such as HDFC Bank, Bajaj Finserv, Bajaj Finance, Bharti Airtel, Maruti Suzuki and other heavyweight names were among the more significant drags on the benchmark indices, while companies including Titan, HCL Tech, Infosys, TCS, Tech Mahindra and Reliance Industries showed relative resilience and helped trim the market’s overall fall.
Investor sentiment has been tempered by a combination of factors. Escalating geopolitical tensions have overshadowed hopes for a strong earnings season, undermining conviction in sustaining recent record highs. Concerns about fresh tariff threats, particularly from key global partners, have added an element of uncertainty about the near-term economic backdrop and corporate profitability. At the same time, foreign institutional investors have shown a trend of continued selling pressure, which markets have absorbed alongside domestic buying flows that provided only partial support to prices.
Technical observers point to a consolidation around the 26,000–26,100 zone on the Nifty, a level seen as a critical support area for traders hoping for a rebound. While the immediate trend remains corrective, some analysts note that the index’s ability to hold near this range could signal underlying market resilience. Supportive commentary from research desks suggests that dips toward these levels may attract buying interest, provided the broader market sentiment stabilises and the index holds above this near-term support.
Amid market volatility, the Reserve Bank of India’s intervening efforts in the currency market have also been in focus, as the central bank responded to pressures on the rupee by bolstering its value against the U.S. dollar. This action has injected some relief into trading conditions for exporters and foreign investors, but currency dynamics remain a factor causing caution among participants.
Meanwhile, longer-term strategic views from major global brokerage houses indicate that Indian equities are starting to look more attractive relative to fixed-income alternatives after a period of muted relative performance. This view lends a slightly more constructive backdrop for participants who are monitoring valuations and positioning for potential re-rating opportunities in the weeks ahead.
Overall, midday trading on January 7 reflected a market marked by measured caution, selective stock action and a focus on risk management amid geopolitical and macroeconomic uncertainties. While broader indices remained under pressure, sectoral divergences and technical support levels offered some stabilising influences that could shape the market mood as the session progresses into the afternoon.