Indian equity markets opened on a bearish note on Monday, extending the cautious tone from the previous week as global uncertainties and sustained foreign institutional investor outflows continued to pressure benchmark indices. The decline comes after markets suffered their worst weekly loss in over three months, with investors remaining concerned about geopolitical developments and trade-related tensions.

Market Performance Overview

Both benchmark indices opened lower and extended their decline during early trading hours. The performance reflected continued investor caution amid multiple headwinds affecting market sentiment.

"Indian equity markets opened on a bearish note, extending the cautious tone of the past week as global cues remained mixed," said Ponmudi R, CEO of Enrich Money. "Geopolitical uncertainties, tariff-related concerns, and sustained FII selling continued to weigh on sentiment."

Previous Week's Performance Impact

Markets had suffered significant losses in the previous week, with the decline driven by renewed tariff threats from US President Donald Trump. The President's warning of 500% tariffs on nations purchasing Russian oil rattled emerging markets and triggered risk-off sentiment globally.

"Markets ended sharply lower on Friday as Donald Trump's renewed tariff threats rattled sentiment," said Prashanth Tapse, Senior VP (Research) at Mehta Equities. "Sentiment was further weighed down by a double hit of Q3 earnings uncertainty and tariff fears."

Individual Stock Performance

Despite the overall market decline, certain stocks managed to post gains while others extended their losses. The performance was mixed across sectors, reflecting selective buying in specific counters.

Top Gainers:

Top Losers:

Sectoral Performance and Global Concerns

Sectoral performance showed divergence, with defence stocks gaining while energy-related indices faced significant pressure. The Defence index gained 1.30% during the previous week, while India Tourism, Oil and Gas, and Energy indices shed over 5% each.

"The drama surrounding the US-India trade deal is getting murkier with strange remarks from the US administration. This is impacting the market," said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments. "Geopolitical developments in Venezuela, the crisis in Iran and Trump's threats regarding Greenland are also being viewed by the markets with concern."

Institutional Investment Flows

Foreign and domestic institutional investor activity showed contrasting patterns, with FIIs continuing their selling pressure while DIIs provided market support.

"Rising civilian unrest in Iran and growing speculation over potential U.S. military involvement—raising the risk of a broader regional conflict in the Middle East—have further dampened risk appetite, triggering defensive positioning," Ponmudi R added.

Technical Outlook and Commodities Update

Technical indicators remained weak across the board, with analysts highlighting key support levels for the indices. Devarsh Vakil, Head of Prime Research at HDFC Securities, noted that "a decisive break below the 100-day EMA at 25,619 could accelerate selling toward the next major support at 25,318."

Shrikant Chouhan, Head Equity Research at Kotak Securities, stated that "as long as the market trades below the 50-day SMA or 26,000/84,900, the weak formation is likely to continue."

In commodities, gold and silver surged to fresh record highs, with COMEX Gold marking a lifetime high at $4,612.70 and MCX Gold reaching ₹1,41,250. Gold gained over 4% during the previous week, while silver rallied more than 7%, driven largely by heightened global uncertainty. Crude oil held near $59 per barrel after recording its strongest two-day rally since October amid geopolitical risks.

"Investor focus is also shifting to the Q3 earnings season, with major IT names such as TCS and HCL Technologies set to announce results—outcomes that could play a key role in shaping near-term market direction," said Ponmudi R.

The Indian stock market extended its bearish run for the sixth consecutive session on Monday, January 12, as investors grappled with multiple headwinds including rising geopolitical risks, concerns over US tariffs, and persistent foreign capital outflow. Both benchmark indices recorded significant declines during the trading session, continuing the downward trajectory that has characterized market performance over the past week.

Market Performance Overview

The market decline was broad-based, with both major indices experiencing substantial pressure throughout the trading session. The following table summarizes the key market movements:

The Sensex crashed over 500 points during the session, representing a decline of more than 0.60% to reach an intraday low of 83,043. Similarly, the Nifty 50 dropped to 25,529, falling 0.60% during Monday's trading session.

Six-Day Decline Impact

The sustained market weakness has resulted in significant losses across both indices over the six-session period. The cumulative impact of the decline is substantial:

Over the six consecutive sessions, the Sensex has declined by more than 2,700 points, representing a drop of over 3%. The Nifty 50 has similarly shed more than 3% during this period, reflecting the broad-based nature of the market decline.

Investor Wealth Erosion

The sustained market decline has had a significant impact on investor wealth and overall market capitalization. The erosion of market value has been substantial:

Investors have seen their wealth eroded by more than ₹16 lakh crore during these six sessions. The overall market capitalisation of BSE-listed firms has dropped to nearly ₹465 lakh crore from over ₹481 lakh crore recorded on January 2.

Market Pressures

The continued decline in Indian equities is attributed to several key factors that are weighing on investor sentiment. The market is currently facing pressure from rising geopolitical risks, which have created uncertainty in global markets. Additionally, concerns over potential US tariffs are adding to the cautious approach adopted by investors. The relentless foreign capital outflow from Indian markets continues to be a significant factor contributing to the sustained selling pressure across various sectors and market segments.