Indian equity markets extended their losing streak for the fifth consecutive trading session on Friday, January 9, as benchmark indices faced sustained selling pressure. The market decline was driven by multiple factors including concerns over foreign capital outflows, geopolitical tensions, and investor caution ahead of the upcoming third-quarter earnings announcements.

Market Performance Overview

The day's trading session saw significant weakness across major indices. The following table summarizes the key market movements:

Five-Day Market Correction

The sustained selling pressure over the past five trading sessions has resulted in substantial losses for Indian equity markets. The cumulative impact of this correction is detailed below:

Key Market Drivers

Several factors contributed to the ongoing market weakness:

• Foreign Capital Outflow Concerns: Persistent worries about foreign institutional investor selling continued to weigh on market sentiment
• Geopolitical Tensions: Ongoing global geopolitical uncertainties added to investor anxiety
• Q3 Earnings Caution: Market participants remained cautious ahead of the third-quarter earnings season announcements

Broader Market Impact

The selling pressure was not limited to large-cap stocks, as broader market indices also witnessed significant declines. Both the BSE Midcap and Smallcap indices fell by over 1% each during the trading session, indicating widespread market weakness across different market capitalizations.

The sustained five-day decline reflects the cautious approach adopted by investors amid multiple headwinds affecting market sentiment. Market participants continue to monitor developments related to foreign fund flows and upcoming corporate earnings to gauge the near-term direction of Indian equities.

Indian benchmark equity indices extended their losing streak for the fifth consecutive session on Friday, with the Sensex and Nifty facing renewed pressure from US tariff concerns and sustained foreign institutional investor outflows. Market sentiment remained cautious as global trade-related uncertainties continued to weigh on investor confidence.

Market Performance

The Sensex experienced significant volatility during the trading session, rebounding briefly in early trade before declining sharply. The index fell 335 points from its day's high to close at 84,164.07, while the broader Nifty declined 21.50 points to settle at 25,850.85.

Market breadth remained negative with approximately 1,349 shares advancing, 1,959 shares declining, and 175 shares unchanged, reflecting the overall bearish sentiment across the broader market.

Key Sectoral Movements

Among the Nifty50 constituents, ICICI Bank, Adani Enterprises, and Adani Ports and Special Economic Zone emerged as major laggards, declining up to 2%. On the positive side, ETERNAL and Oil & Natural Gas Corporation were the top gainers, rising up to 3% during the session.

Foreign Investment Outflows

Foreign institutional investors continued their selling spree, offloading equities worth ₹3,367.12 crore on Thursday. This marked the fourth straight session of selling by FIIs after a brief pause on January 2, adding significant pressure to the domestic equity markets.

US Tariff Concerns Drive Market Sentiment

The benchmark indices have declined sharply over recent sessions following Trump's hints at raising tariffs on Indian goods over New Delhi's purchase of Russian crude. Over the last four sessions, the Sensex and Nifty have declined 1.8% and 1.7%, respectively.

Trump has approved a sanctions bill that could impose 500% tariffs on countries purchasing Russian oil. US Senator Lindsey Graham confirmed having a productive meeting with Trump at the White House, stating that the bipartisan Russia sanctions bill would give tremendous leverage against countries like China, India, and Brazil to incentivize them to stop buying cheap Russian oil.

Additional Market Pressures

Several other factors contributed to the market decline:

• Crude Oil Prices: Brent crude rose 0.53% to $62.32 per barrel, increasing India's import bill and inflation risks
• Currency Weakness: The rupee fell 7 paise to 89.97 against the US dollar amid sustained FII outflows and higher crude prices
• Supreme Court Ruling: Investors awaited a US Supreme Court ruling on the legality of tariffs imposed by Trump, with potential refunds of nearly $150 billion to importers

Technical Outlook

According to technical analysts, the Nifty has breached crucial support levels. The index violated its 50-day exponential moving average at 25,911 and the previous swing low of 25,878 on the daily chart. The next meaningful support level appears near 25,700, coinciding with the December 2025 swing low. On the upside, the 26,000–26,050 zone is expected to act as strong resistance in the near term.

Market experts emphasized that persistent concerns over potential US tariff actions linked to India's Russian oil imports have kept sentiment fragile, while the lack of visible progress in US-India trade discussions reinforces institutional caution, particularly among foreign investors.