Indian Equity Benchmark Indices Fall Over 0.5% Amid US Tariff Concerns

Market Update at 12:44 PM: Equity markets in India remained volatile on Friday, following their worst sell-off in a month amid concerns over potential US tariffs. Investor sentiment remained cautious as the broader indices continued to reel from global uncertainties.

As of 12:32 PM, the Nifty 50 was trading 0.58 per cent down, or 151.15 points lower, at 25,725.70. The BSE Sensex fell 0.60 per cent, or 501.29 points, to trade at 83,679.67.

Among Nifty 50 stocks, Eternal, HCLTech, and Asian Paints emerged as Top Gainers, while ICICI Bank, Adani Enterprises, and Adani Ports and Special Economic Zone were the biggest losers.

In the broader market, the Nifty Midcap 150 index declined 0.33 per cent, and the Nifty Smallcap 250 fell 0.79 per cent. Shares of Hitachi Energy India, GE Vernova and T&D, Elecon Engineering Company, Indian Energy Exchange, and Godrej Properties underperformed, dragging the broader indices lower.

Sector-wise, the Nifty realty and Nifty Financial Services indices weighed on the market, while Nifty PSU Bank and Nifty Oil and Gas indices led the gains, providing some relief to investors.

Market Update at 9:36 AM: India’s equity benchmarks opened nearly unchanged on Friday following four consecutive sessions of declines driven by renewed concerns over potential U.S. tariff actions. Investors also tracked a key U.S. Supreme Court hearing later in the day on the legality of tariff measures imposed by Washington.

At 9:16 a.m. IST, the Nifty 50 was up 0.07 per cent at 25,898, while the Sensex firmed 0.17 per cent to 84,319.999. Market breadth remained slightly positive as 14 of the 16 major sectoral indices advanced, although gains were marginal. In the broader markets, Small-Caps eased 0.1 per cent and Mid-Caps edged higher by 0.4 per cent.

The Nifty and Sensex have declined 1.7 per cent and 1.8 per cent, respectively, over the previous four sessions, after U.S. President Donald Trump signalled the possibility of further tariff increases on Indian goods due to New Delhi’s continued purchases of Russian crude.

Sentiment remained cautious ahead of a U.S. Supreme Court ruling on whether Trump’s tariff regime was lawful. A verdict declaring the duties “illegal” could require the U.S. government to refund nearly USD 150 billion to importers, potentially influencing future trade policy and market positioning.

Pre-Market Update at 7:57 AM: Following a sharp sell-off in the previous session, the Indian stock market is likely to open cautious on Friday, January 9, as mixed Asian signals and global macro uncertainties continue to weigh on sentiment. 

Early indications from Gift Nifty hinted at a mildly positive start, with Gift Nifty trading at 26,002.5, up 35 points or 0.13 per cent from Thursday’s Nifty futures close, suggesting a marginally positive domestic start.

On Thursday, benchmark indices witnessed steep, broad-based selling amid weak global cues. The Sensex declined 780 points or 0.92 per cent to close at 84,180.96 its sharpest single-day percentage fall since August 26, 2025. The Nifty 50 slipped below the 25,900 level as foreign selling and a weak rupee added to pressure. 

Asian markets opened mixed on Friday as investors awaited China’s inflation data. Japan’s Nikkei 225 advanced 0.54 per cent, Topix gained 0.46 per cent, while South Korea’s Kospi declined 0.41 per cent and Kosdaq slipped 0.21 per cent. Australia’s S&P/ASX 200 hovered slightly below flat, while Hong Kong’s Hang Seng futures indicated a higher open at 26,312 versus the previous close of 26,149.31.

Meanwhile, Wall Street ended mixed overnight as investors rotated out of technology stocks. The Dow Jones gained 270.03 points or 0.55 per cent to 49,266.11, the Nasdaq Composite fell 0.44 per cent to 23,480.02, while the S&P 500 inched up 0.01 per cent to 6,921.46. Information technology was the weakest S&P sector, declining over 1 per cent.

Geopolitical tensions in South America added to the cautious global sentiment as the U.S. Senate prepared to vote on restricting President Donald Trump from initiating further military action in Venezuela without congressional approval. This follows recent U.S. operations, including the capture of President Nicolás Maduro, which have elevated uncertainty around regional stability.

Crude oil prices surged more than 3 per cent on Thursday as supply disruption concerns intensified in light of developments in Venezuela and worries involving Russia, Iraq and Iran. Brent crude settled 3.4 per cent higher at USD 61.99 per barrel, while WTI rose 3.2 per cent to USD 57.76 per barrel, marking Brent’s highest close since December 24.

Gold prices were largely steady as traders awaited U.S. nonfarm payrolls data for clarity on the Federal Reserve’s interest rate trajectory. Spot gold stood at USD 4,452.64 per ounce while U.S. gold futures for February delivery settled at USD 4,460.70. Silver, however, dropped 3.2 per cent to USD 75.64 per ounce.

The U.S. dollar index continued strengthening, advancing 0.2 per cent to 98.883—its third straight session of gains, on expectations related to U.S. employment data and an upcoming Supreme Court ruling on emergency tariff authority.

With geopolitical tensions elevated, macro data incoming and trade-related uncertainties in focus, market volatility may remain high in the near term as investors position cautiously ahead of the earnings season.

For today, SAIL & Samaan Capitalwill remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.