Indian equity markets suffered their most devastating start to a calendar year in recent memory, with sustained selling pressure wiping out over ₹9 lakh crore in investor wealth across just five trading sessions. The Sensex plummeted more than 2,000 points during the week, including a sharp 600-point decline on Friday, as global uncertainty and trade tensions created what market participants described as a comprehensive "risk-off" phase across Dalal Street.

Trump Tariff Rhetoric Triggers Market Rout

The primary catalyst behind the sustained selloff was renewed tariff-related rhetoric from US President Trump, who signaled potential increases in tariffs on Indian goods over India's continued purchases of Russian crude oil. The situation deteriorated further when the US hinted at imposing punitive 500% tariffs on countries importing Russian oil, rekindling fears of major disruptions to global trade flows.

The India-US trade relationship has come under intense scrutiny as negotiations on a bilateral trade agreement remain unresolved despite six rounds of talks since March. US Commerce Secretary Howard Lutnick recently claimed that the deal stalled due to a lack of direct engagement between Prime Minister Narendra Modi and Trump. The Trump administration has already imposed tariffs of up to 50% on Indian goods, among the highest levied on any country.

Sustained Foreign Investor Exodus

Foreign institutional investor outflows significantly amplified the market's weakness throughout the week. The selling pressure remained intense, with foreign investors offloading Indian equities worth ₹3,367 crore on Thursday alone, extending their selling streak to a fourth consecutive session after a brief pause earlier in the month.

Persistent FII selling has particularly impacted large-cap stocks where foreign ownership remains high. Defensive sectors offered limited support as investors largely remained on the sidelines, awaiting clarity on global trade policy and geopolitical developments.

Technical Analysis Reveals Bearish Patterns

From a technical perspective, the damage proved equally severe across key market indicators. Ponmudi R, CEO of Enrich Money, noted that the Nifty lost nearly 2.40% over the week, forming lower highs and lower lows in a classic bearish pattern. The index slipped below key short-term moving averages, with momentum indicators pointing to continued weakness.

While mild buying emerged near 25,623 levels, the lack of strong volumes prevented any meaningful recovery. Immediate support lies around 25,600, with a stronger base near 25,500, while 26,000 now acts as a major resistance zone.

Vinod Nair, Head of Research at Geojit Investments, observed that markets remain stuck in a consolidation phase due to weak global cues, rising bond yields and persistent FII outflows. He added that uncertainty around US-India tariff negotiations and geopolitical tensions has intensified domestic risk-off sentiment.

Nilesh Jain, Head of Technical and Derivatives Research at Centrum Broking, pointed out that the Nifty slipped below the 25,700 mark and faced stiff resistance near its 50-day moving average. Momentum indicators have generated sell signals on both daily and weekly charts, while India VIX jumped 16% during the week, signaling rising fear in the market.

Critical US Supreme Court Verdict Awaited

Investors are closely monitoring a crucial development as the US Supreme Court is set to deliver a landmark ruling on the legality of sweeping tariffs imposed by Trump under the International Emergency Economic Powers Act. According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments, there is a high probability of the verdict going against Trump, but the market reaction will depend on whether the tariffs are partially struck down or declared entirely illegal.

Expert Recommendations for Investors

Market experts are advising caution rather than panic in the current environment. While near-term sentiment remains fragile, several analysts believe the current fall is corrective rather than a complete trend reversal. Long-term investors are being advised to avoid aggressive buying, focus on high-quality stocks, and stagger investments gradually. Short-term traders are recommended to stay light, respect stop-loss levels and brace for continued volatility until global clarity emerges.

Indian equity benchmarks extended their losing streak for a fifth consecutive session on January 9, 2026, as uncertainty surrounding the US Supreme Court's verdict on Trump tariffs weighed heavily on investor sentiment. The markets opened weak amid mixed global cues and witnessed intensified selling pressure throughout the trading session.

Market Performance Overview

The benchmark indices faced significant pressure, with the Nifty slipping below the 25,850 level at opening and further declining to an intraday low of 25,623.00. The sustained selling momentum reflected broader market concerns about potential trade policy implications.

For the week, both BSE Sensex and Nifty recorded losses of 2.50% each, highlighting the sustained bearish sentiment across Indian equity markets.

Broader Market Underperformance

The broader market indices witnessed more pronounced declines compared to the benchmark indices. The underperformance was particularly evident in mid and small-cap segments, which have been facing sustained pressure.

Individual Stock Movements

The session saw mixed performance among individual stocks, with notable movements across various sectors. Major losers dominated the trading landscape, while select stocks managed to post gains despite the overall negative sentiment.

Top Gainers:

• Asian Paints: ₹2,825.50 (+₹39.00, +1.40%)
• ONGC
• Bharat Electronics
• HCL Technologies

Major Losers:

• Adani Enterprises: ₹2,153.70 (-₹60.30, -2.72%)
• Shriram Finance
• NTPC
• ICICI Bank
• Jio Financial

Sectoral Performance Analysis

Most sectoral indices ended in negative territory, with only three sectors managing to close higher. The IT sector emerged as the best performer, while auto stocks faced the maximum pressure.

The auto, FMCG, realty, and consumer durables sectors declined between 1-2%, reflecting broad-based selling pressure across key market segments.

Notable Corporate Developments

Several individual stocks witnessed significant movements due to company-specific developments:

• Elecon Engineering Company shares fell 16.00% after Q3 consolidated profit declined 33.00%
• Keystone Realtors shares dropped 2.00% as Q3 pre-sales and collections decreased marginally
• Andhra Cements shares surged 6.00% following promoter's announcement to offload stake via OFS

Market Breadth and 52-Week Lows

The session witnessed poor market breadth, with over 300 stocks hitting their 52-week lows. This extensive list included prominent names across various sectors, indicating widespread selling pressure.

Notable stocks at 52-week lows:

• Tejas Networks
• Inox Wind
• Siemens Energy
• Afcons Infrastructure
• IRCTC
• NCC
• Premier Energies
• Happiest Minds
• Jyothy Labs
• Page Industries

The sustained decline across Indian equity markets reflects ongoing concerns about global trade policies and their potential impact on domestic economic growth, with investors adopting a cautious approach amid uncertain external factors.