Stock markets decline on selling in blue-chips amid fresh tariff hike threat by U.S.

By Admin

06 Jan, 2026

Introduction
Indian equity markets ended lower on Monday, January 5, 2025, as selling pressure in heavyweight blue-chip stocks weighed on overall sentiment. Fresh warnings from the United States over potential tariff hikes against Indian imports added to investor caution, leading to profit booking after recent record highs.

Sensex and Nifty Close in the Red
The 30-share BSE Sensex slipped 322.39 points, or 0.38%, to close at 85,439.62. During intraday trade, the index fell as much as 446.68 points, touching a low of 85,315.33.
Similarly, the NSE Nifty failed to sustain its early momentum. After hitting a new lifetime intraday high of 26,373.20, the index declined 78.25 points, or 0.30%, to settle at 26,250.30.

Blue-Chip Stocks Drag the Market
Market weakness was largely driven by selling in key blue-chip counters. From the Sensex pack, HDFC Bank, Reliance Industries, Infosys, HCL Technologies, Tata Consultancy Services, and Bajaj Finance emerged as the biggest laggards, pulling the benchmark indices lower.

Selective Buying Supports Some Stocks
Despite the broader market decline, selective stocks managed to post gains. Bharat Electronics, Hindustan Unilever, Tata Steel, and UltraTech Cement were among the notable gainers, indicating stock-specific buying interest even in a cautious market environment.

Market Sentiment and Technical Levels
According to Ashika Institutional Equities, the Nifty’s move to a fresh record high was followed by profit-taking near the top. The index drifted lower by the close, testing the crucial support zone around 26,200. Overall sentiment remained guarded, with many participants preferring to stay on the sidelines.

Geopolitical Concerns Weigh on Investors
Geopolitical tensions further dampened risk appetite. Market participants remained cautious amid escalating global concerns following the U.S. attack on Venezuela over the weekend. Additionally, renewed remarks by U.S. President Donald Trump on potential tariff hikes against Indian imports—linked to India’s continued purchases of Russian oil—added another layer of uncertainty.

Institutional Activity Provides Some Support
On the institutional front, Foreign Institutional Investors bought equities worth ₹289.80 crore on Friday, January 2, as per exchange data. Domestic Institutional Investors also remained supportive, purchasing stocks worth ₹677.38 crore. However, this buying was not sufficient to offset the pressure from blue-chip selling during the session.

Conclusion
While Indian markets have shown strong momentum in recent sessions, the latest decline highlights growing investor sensitivity to global geopolitical developments and trade-related risks. With tariff concerns and international tensions in focus, markets may continue to remain volatile in the near term, with stock-specific action and institutional flows playing a key role in determining direction.