India equity benchmarks fall for third session as HDFC Bank, auto stocks drag
Indian equity markets extended their losing streak for a third consecutive session on Wednesday, January 7, as weakness in heavyweight banking and automobile stocks weighed on investor sentiment. Ongoing geopolitical tensions and growing concerns over tariffs further added to market caution.
Market Overview: Benchmarks Extend Losses
The Nifty 50 slipped 0.14% to close at 26,140.75, while the Sensex declined 0.12% to 84,961.14. Over the past three trading sessions, the Nifty 50 and Sensex have lost approximately 0.7% and 0.9%, respectively, reflecting a cautious and selective trading environment.
Market participants remained focused on company-specific developments rather than broad-based buying, leading to uneven sectoral performance.
Expert View: Consolidation Phase Continues
According to Aamar Deo Singh, Senior Vice President at Angel One, the current trend indicates consolidation rather than a sharp correction.
He noted that the market is becoming increasingly stock-specific and sector-driven, as investors closely track quarterly business updates and earnings expectations across industries.
Geopolitical Tensions and Tariff Worries Add Pressure
Global factors also played a role in dampening sentiment. Donald Trump recently warned of higher tariffs on India over its continued purchases of Russian oil, at a time when New Delhi is seeking a broader trade agreement with Washington.
The United States has already imposed tariffs of up to 50% on certain Indian goods, with a significant portion introduced as a punitive measure linked to India’s imports of Russian crude. These developments have heightened concerns about trade disruptions and their potential impact on Indian corporates.
Banking Stocks Drag Indices Lower
HDFC Bank, the most heavily weighted stock on the benchmarks, declined for a third straight session, falling 1.4%. Investor concerns around slower deposit growth continued to pressure the stock, making it one of the biggest drags on the overall market.
Auto Stocks Retreat After Recent Gains
The automobile sector witnessed a pullback after six consecutive sessions of gains. The NIFTY Auto index fell 0.8%.
Maruti Suzuki India dropped 2.8%.
Tata Motors declined 1.6%, extending losses for a second day following weaker December-quarter sales at its luxury arm Jaguar Land Rover.
Jewellery Stocks Shine on Festive Demand
In contrast to the broader market weakness, jewellery retailers outperformed after reporting strong business updates for the December quarter. Festive season demand and a rally in gold prices supported the sector.
Titan surged 3.9% to hit a record high, emerging as the top gainer on the Nifty 50.
IT Stocks Rally Ahead of Earnings
Information technology stocks provided some relief to the market, with the NIFTY IT jumping 1.9% ahead of the quarterly earnings season.
Tata Elxsi soared 9.5%.
Tata Technologies gained 5.3%.
Both stocks rallied after J.P. Morgan upgraded their ratings to “neutral” from “underweight,” boosting investor confidence.
Outlook: Selective Buying Likely
As markets navigate geopolitical risks, tariff uncertainties, and earnings-related triggers, experts believe near-term movement will remain volatile and selective. Stock-specific action, driven by quarterly performance and sectoral fundamentals, is expected to define market trends in the coming sessions rather than broad-based rallies.
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