Indian equity benchmarks closed sharply lower on Wednesday, January 8, with the Nifty slipping below the 25,900 mark amid broad-based selling pressure.
At the closing bell, the Sensex tumbled 780.18 points, or 0.92 per cent, to settle at 84,180.96, while the Nifty declined 263.90 points, or 1.01 per cent, to end at 25,876.85. Market breadth remained firmly negative, as only 974 stocks advanced against 2,870 declines, while 137 shares ended unchanged. Sectoral performance was uniformly weak, with all indices finishing in the red. Metal, oil and gas, power, PSU banking, and capital goods stocks led the losses, each falling between 2 and 3 per cent. On the Nifty, Hindalco Industries, ONGC, Jio Financial Services, Wipro and Tech Mahindra emerged as the top laggards. In contrast, ICICI Bank, Eternal, SBI Life Insurance and Bharat Electronics provided limited support on the upside. The broader market mirrored the weakness in frontline indices, with both the BSE Midcap and Smallcap indices sliding 2 per cent apiece, underscoring widespread risk aversion among investors. Persistent FII Selling Weighs On Sentiment One of the primary triggers behind the ongoing weakness has been sustained selling by foreign institutional investors. On Wednesday alone, FIIs offloaded equities worth Rs 1,527.71 crore, marking the third straight session of net selling. After being marginal buyers on January 2, foreign investors have already sold shares worth nearly Rs 5,760 crore so far this month, following heavy outflows seen throughout 2025. Weekly Expiry Fuels Volatility Adding to the turbulence, Thursday marked the weekly expiry for Sensex derivatives. Such sessions typically see traders unwinding or rolling over positions, leading to higher volumes and sharper intraday swings. This expiry-related activity amplified market volatility amid an already fragile backdrop. Global Cues And Trade Uncertainty Add Pressure Weak cues from overseas markets further dampened risk appetite. Key Asian indices such as Japan’s Nikkei 225 and Hong Kong’s Hang Seng were trading lower, while US markets ended mostly in the red overnight. “Geopolitics and global trade have cast a shadow of chronic risk aversion for equity markets,” analysts led by Abhishek Saraf of Motilal Oswal Financial Services told Reuters, adding that the conclusion of the long-pending India-US bilateral trade deal would be a key catalyst for an upside move. Concerns around trade intensified after US President Donald Trump warned of higher tariffs on Indian goods over Russian oil purchases. The Nifty 50 has slipped 0.7 per cent over the past three sessions, while the Sensex has declined 0.9 per cent amid these developments. “The much-awaited US-India trade deal, which is critical for India’s sustained growth and macro-economic stability, is not happening. This and the continuing FII selling are impacting the market,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said. Crude Prices And Technical View Rising crude oil prices also weighed on sentiment, with Brent crude climbing 0.4 per cent to $60.20 per barrel. Higher oil prices are typically negative for India, which depends heavily on imports to meet its energy needs. From a technical perspective, analysts remain cautiously optimistic despite near-term weakness. Devarsh Vakil, Head of Prime Research at HDFC Securities, said the broader positional trend is still constructive. “On the upside, the recent swing high at 26,373 is likely to act as an immediate resistance level, while 26,000 is expected to provide strong near-term support,” he said.
