Sensex slips over 100 pts, Nifty below 26,200 as geopolitics weigh on earnings optimism

Indian equities opened lower on Wednesday, with geopolitical tensions and tariff-related concerns blunting optimism around the earnings outlook and keeping the Sensex and Nifty just shy of record territory.

The BSE Sensex fell 112 points, or 0.13%, at the open to 84,952, while the NSE Nifty 50 declined 56 points, or 0.22%, to begin the session at 26,122.

On the 30-stock Sensex, losses were led by Tata Motors Passenger Vehicles, HDFC Bank, Bharti Airtel, Bajaj Finserv and Bajaj Finance, with each stock sliding between 1% and 1.5%.


In contrast, the broader market showed resilience, with midcap and smallcap indices advancing 0.3% and 0.2%, respectively.

Among individual movers, Titan climbed about 4% to a 52-week high after the Tata Group retailer posted a strong showing across its consumer businesses in the December quarter. Godrej Consumer Products rose 2% after the company signalled solid operational performance for the period.

Expert views

The recent market movements have been devoid of any trend and clear direction and actions in a few mega stocks are influencing the overall market disproportionately, said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, adding that "For instance, yesterday despite positive institutional buying Nifty drifted down by 71 points, mainly due to sharp declines in two stocks- Reliance and HDFC Bank. The large volumes in these two stocks in the derivative and cash market indicate activity associated with settlement day. In other words, the sharp dips in these stocks have nothing to do with their fundamentals; it is more technical in nature."

Going forward, there is scope for high volatility caused by events and news, said Vijayakumar, adding that "Trump tweets and actions can always influence the market. Another important event which investors should closely watch is a possible Supreme Court verdict on Trump tariffs very soon. If the verdict goes against the reciprocal tariffs it will create huge volatility in stock markets."

FII/DII Tracker

On the institutional front, Foreign Institutional Investors (FIIs) sold equities worth a nearly Rs 108 crore on January 6, while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 1,749 crore.

Global Markets

Crude futures fell while resource stocks advanced in Asian trading, as investors weighed the implications of political turmoil in Venezuela and uncertainty surrounding the country’s oil reserves.

Japanese equities dragged on regional benchmarks, even as commodity-linked shares found support after a sharp overnight rally in industrial metals.

U.S. crude slipped 1.1% to $56.48 a barrel, while Brent declined 0.8% to $60.22. MSCI’s broad Asia-Pacific index excluding Japan fell 0.2%, with Japan’s Nikkei down 0.25%.

Australia’s S&P/ASX 200, heavily exposed to resource producers, rose 0.3%.

Gold prices eased, with spot gold down 0.6% at $4,469.04 an ounce. Copper edged 0.1% lower to $13,111.50 a tonne. In cryptocurrencies, bitcoin slipped 0.8% to $92,499.05, while ether fell 0.5% to $3,257.66.

Crude impact

Oil prices fell on Wednesday after U.S. President Donald Trump said Venezuela would be “turning over” between 30 million and 50 million barrels of oil currently under sanctions to the United States.

U.S. West Texas Intermediate crude slid 78 cents, or 1.37%, to $56.35 a barrel by 0200 GMT. Brent crude declined 61 cents, or 1%, to $60.09 a barrel.

Rupee vs Dollar

The Indian rupee edged lower in early trade on Wednesday, slipping 2 paise to 90.20 against the U.S. dollar, as traders weighed slightly weaker Asian cues against expectations of central bank intervention that could limit further downside.

The dollar index, which tracks the greenback against a basket of major currencies, was little changed at 98.60, following a 0.2% rise in the previous session.

(with inputs from agencies)