Dalal Street’s rough week: What is weighing on market mood at NSE and BSE?

Indian stock markets slipped further on Friday, January 9, extending a losing streak that has now stretched to five sessions. What started as a cautious rebound in early trade quickly faded, as investors pulled back amid global trade tensions, steady foreign selling and rising oil prices. By midday, the mood was firmly risk-off.

Five days of losses deepen the damage

The Sensex and Nifty have been under pressure all week. Over the past five sessions, the Sensex has shed 2,181.71 points, sliding from 85,762.01 on January 2 to an intraday low of 83,580.30 on Friday. The Nifty 50 has dropped around 2.5% in the same period.

By about 12:40 pm, the Sensex was down 607 points, or 0.72%, at 83,573.67. The Nifty slipped 187 points, also 0.72%, to 25,689.90. The sell-off has erased about Rs 6.8 lakh crore in market value in just five days, taking the total capitalisation of BSE-listed firms to Rs 468.97 lakh crore.

Trade tensions with the US unsettle investors

A major drag has been uncertainty around US trade policy. Markets have remained uneasy since President Donald Trump signalled possible tariff hikes on Indian goods, linked to India’s purchases of Russian crude. Despite six rounds of talks since March, a bilateral trade agreement between India and the US is still not in place.

The Trump administration has already imposed steep tariffs on India, including levies tied to Russian oil imports. Matters have become more tense ahead of a US Supreme Court ruling on whether these tariffs are legal. A verdict against the tariffs could reshape global trade flows and sharply influence market sentiment, especially for India, which has been heavily impacted.

Foreign selling adds to the pressure

Persistent selling by foreign institutional investors has amplified the fall. On Thursday alone, FIIs sold Indian equities worth Rs 3,367.12 crore, marking a fourth straight session of outflows. Although domestic institutions stepped in as buyers, foreign withdrawals continued to weigh on benchmark indices.

Global cues remain mixed

Overseas markets offered little comfort. Asian stocks were cautious as investors waited for key US data and the Supreme Court decision. While Japan’s Nikkei rose on strong corporate outlooks, broader Asia edged lower. European futures were positive, and Wall Street ended mixed in the previous session.

Oil prices and technical signals worsen sentiment

Rising crude prices have emerged as another headwind for India, a major oil importer. Brent and US crude traded near two-week highs amid geopolitical tensions and supply concerns involving Russia, Iraq and Iran. Higher oil prices raise inflation risks and strain the import bill.

At the same time, technical indicators have turned negative. Key support levels have been breached, and charts suggest selling pressure could persist unless benchmarks recover crucial levels. For now, markets remain fragile, with investors bracing for more volatility as global and domestic risks collide.