By: Micah Jonah
January 8, 2026
India’s stock markets recorded their steepest one day decline in more than four months on Thursday as renewed concerns over potential U.S. tariffs triggered widespread selling across sectors.
The Nifty 50 fell 1.01 percent to close at 25,876.85, while the Sensex dropped 0.92 percent to 84,180.96. Both indices are now down nearly 2 percent for the week.
All major sectors ended lower, with small cap and mid cap stocks sliding about 2 percent each. Heavyweight Reliance Industries weighed heavily on the market, declining 2.2 percent.
Investor sentiment was rattled after U.S. President, Donald Trump signaled plans to impose tariffs of up to 500 percent on countries purchasing Russian oil, warned India of possible higher duties. The U.S. has already imposed tariffs of up to 50 percent on certain Indian goods as trade negotiations continue.
Foreign investors have sold about 900 million dollars worth of Indian shares so far this month, following record outflows of 19 billion dollars in 2025.
Export oriented stocks were among the worst hit, with apparel, seafood and metal companies posting sharp losses. Oil and gas stocks also declined as investors assessed possible changes in global crude flows.
The Indian rupee weakened despite a surprise intervention by the central bank, as persistent capital outflows and tariff uncertainty continued to pressure markets.
