Stock markets fall for second day as selling in Reliance Industries, HDFC Bank dents sentiment

By Admin

07 Jan, 2026

Introduction
Indian equity markets extended their losing streak for the second consecutive session on Tuesday, January 6, 2026, as heavy selling pressure in heavyweight stocks like Reliance Industries and HDFC Bank weighed on investor sentiment. Concerns over potential trade tensions with the United States and mixed domestic economic signals further added to the cautious mood across Dalal Street.

Benchmark Indices End Lower
The 30-share BSE Sensex declined 376.28 points, or 0.44%, to close at 85,063.34. During the intraday session, the index slipped as much as 539.52 points to touch a low of 84,900.10, reflecting sustained selling in select blue-chip counters.
The 50-share NSE Nifty also ended in the red, falling 71.60 points, or 0.27%, to settle at 26,178.70. This came a day after the index failed to sustain its record intraday high of 26,373.20 and closed lower.

Heavyweights Drag the Market
Selling in index heavyweights played a key role in dragging the markets down. Reliance Industries tumbled 4.42%, emerging as one of the biggest drags on the benchmarks. HDFC Bank, ITC, Kotak Mahindra Bank, and InterGlobe Aviation were also among the notable laggards.
Among the Sensex constituents, Trent saw a sharp fall of 8.62% after the Tata Group’s retail arm reported December-quarter revenue growth that failed to impress investors. On the positive side, stocks such as ICICI Bank, Sun Pharma, Hindustan Unilever, and State Bank of India provided some support to the indices.

Global and Macro Concerns Weigh
Investor sentiment was also hit by fresh geopolitical and trade-related worries. US President Donald Trump stated that Prime Minister Narendra Modi was aware of Washington’s displeasure over India’s purchases of Russian oil, adding that the US could raise tariffs on India “very quickly.” These comments revived concerns about potential trade friction between the two countries.
Meanwhile, India’s services sector showed signs of moderation. The HSBC India Services PMI Business Activity Index slipped to 58.0 in December from 59.8 in November, marking the slowest pace of expansion in 11 months. While the reading remained above the 50-mark that signals expansion, overall business sentiment fell to its lowest level in nearly three-and-a-half years.

Institutional Activity and Global Cues
Foreign institutional investors turned net sellers, offloading equities worth ₹36.25 crore on Monday, January 5, after a brief pause. In contrast, domestic institutional investors remained supportive, buying shares worth ₹1,764.07 crore, which helped limit deeper losses.
In global markets, Asian indices such as South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng ended significantly higher. European markets were trading mixed, while US markets had closed higher on Monday. Brent crude prices edged up 0.28% to $61.93 per barrel, offering little direction to equities.

Conclusion
With continued pressure from heavyweight stocks, cautious global cues, and lingering concerns over trade relations and domestic growth, Indian equity markets ended lower for the second straight day. Investors are likely to remain watchful in the near term, tracking global developments, macroeconomic data, and upcoming corporate earnings for clearer direction.