The Indian stock market's losing streak extended to five consecutive trading sessions on January 9, with the Nifty 50 declining 0.80% to reach a daily low of 25,665. The benchmark index has faced significant selling pressure, cumulatively losing 663 points or 2.50% over the five-day period, representing its worst weekly performance in more than three months.

Market Performance Overview

The following table summarizes the recent market decline:

Despite beginning the year on a positive note with the Nifty 50 scaling a fresh record high of 26,273, market optimism quickly dissipated. Investor confidence in Asia's third-largest economy has been shaken by multiple factors, causing local equities to underperform their Asian peers in early January.

US Tariff Concerns Drive Selling Pressure

Fresh tariff warnings from the US administration have emerged as a primary concern for market participants. The US has warned of higher tariffs on Indian exports if India continues purchasing Russian oil. A bipartisan US bill proposing tariffs of up to 500% on countries buying Russian oil has received backing and awaits congressional approval.

The escalating trade tensions have resulted in significant foreign portfolio investor outflows:

The US had previously imposed an initial 25% tariff, followed by an additional 25% tariff on India due to Russian oil purchases, which Washington views as helping to fund Russia's conflict in Ukraine. These fresh warnings appear to have further dampened market sentiment as they could delay potential trade agreements between the two countries.

Historical January Weakness

January has historically proven challenging for Indian equities, with the Nifty 50 closing lower in each of the past five years. The month typically sees increased market activity as companies release business updates alongside their December quarter results, contributing to cautious sentiment among investors.

US Supreme Court Verdict Awaited

Market participants are closely monitoring the US Supreme Court's expected ruling on tariffs imposed by the US administration on trade partners. The court scheduled January 9 as an "opinion day," marking the first opportunity for a ruling on the tariff measures. Market experts suggest the verdict details will be crucial in determining the subsequent market reaction, particularly regarding whether tariffs would be partially or completely struck down.

Investment Outlook

Despite the current market weakness, analysts note that segments including financials, consumer discretionary, and industrials have corrected due to overall market pressure rather than fundamental concerns. These sectors may present opportunities for long-term investors, though consultation with certified experts remains advisable before making investment decisions.

Indian equity markets witnessed continued selling pressure on Friday, with benchmark indices extending their losing streak to five consecutive sessions. The Nifty 50 breached the psychologically important 25,700 level, while the Sensex declined by nearly 700 points, reflecting broad-based weakness across market segments.

Market Performance Overview

The key market indices posted significant declines during Friday's trading session:

Broader Market Weakness

The selling pressure was not limited to large-cap stocks, as broader market segments also experienced notable declines. The Nifty Midcap 100 index fell 0.39%, while the Smallcap 250 index posted a steeper decline of 0.94%. This widespread weakness across market capitalizations indicates comprehensive selling pressure rather than sector-specific concerns.

Volatility Surge

Market volatility increased significantly during the trading session, with the VIX index rising over 3%. The volatility index, which measures market fear and uncertainty, typically rises during periods of market stress and declining equity prices. This surge in volatility reflects heightened investor anxiety and uncertainty in the current market environment.

Market Outlook

The consecutive five-session decline represents a notable correction phase for Indian equity markets. The breach of key technical levels, particularly the Nifty 50 falling below 25,700, may attract attention from technical analysts and traders monitoring support and resistance levels. The sustained selling pressure across multiple sessions suggests underlying concerns affecting investor sentiment in the current market cycle.