Markets tumbled sharply on Thursday, with the Nifty 50 breaching the crucial 26,000 level as investor sentiment weakened following reports that US President Donald Trump approved legislation proposing a staggering 500 per cent tariff on countries importing Russian oil.
The benchmarks recorded their steepest fall in over four months, with the BSE Sensex closing 780.18 points or 0.92 per cent lower at 84,180.96, while the Nifty 50 shed 263.90 points or 1.01 per cent to settle at 25,876.85, marking its fourth consecutive negative close.
“In recent developments, the tariff dispute between India and the United States has escalated, with US President Donald Trump approving legislation authored by Senator Lindsey Graham that would authorise the imposition of a 500 per cent tariff on countries importing Russian oil,” said Harsimran Sahni, EVP & Head – Treasury, Anand Rathi Global Finance.
“The proposed measure is aimed at curbing Moscow’s energy revenues but would have far-reaching consequences for major buyers such as India, which has substantially increased its imports of discounted Russian crude since the start of the Ukraine conflict.”
Market breadth remained decidedly negative with 3,225 stocks declining against just 992 advances on the BSE, while 190 stocks hit 52-week lows compared to 113 touching 52-week highs. Only four stocks managed to close in the green on the Nifty 50, led by Eicher Motors, which gained 0.78 per cent to close at ₹283.15, followed by SBI Life Insurance at ₹2,081.80, up 0.53 per cent, ICICI Bank at ₹1,434.90, up 0.50 per cent, and Bajaj Finance at ₹970.10, up 0.13 per cent.
Metal rout
Metal stocks bore the brunt of the sell-off, with the Nifty Metal index plummeting 3.4 per cent as commodity prices weakened globally. Hindalco Industries led the decliners, falling 3.78 per cent to ₹903.00, followed by Jio Financial Services, down 3.57 per cent at ₹292.65, Wipro declined 3.29 per cent to ₹261.90, ONGC fell 3.29 per cent to ₹231.20, and Tech Mahindra dropped 3.03 per cent to ₹1,575.90. Seven stocks hit lower circuit limits during the session.
“Selling was broad-based, with metals and oil & gas stocks leading the decline,” noted Gaurav Garg, Research Analyst at Lemonn Markets Desk. “Markets were influenced by foreign fund outflows, global cues, rising crude prices, derivatives expiry-related volatility, and concerns over potential US tariffs on Indian goods connected to Russia-related trade sanctions.”
Broad slide
The broader markets faced severe pressure, with the Nifty Midcap 100 declining 1,202.15 points or 1.96 per cent to 60,222.55, while the Nifty Smallcap 100 fell 357.45 points or 1.99 per cent to 17,601.05. The Nifty Next 50 witnessed the steepest decline, falling 1,494.50 points or 2.11 per cent to 69,196.10. The Nifty Bank closed at 59,686.50, down 304.35 points or 0.51 per cent, while the Nifty Financial Services index fell 180.75 points or 0.65 per cent to 27,672.60.
The rupee depreciated 6 paise to close at 89.93 against the dollar amid renewed outflows from Indian markets. “The currency continues to trade in a volatile range over the past few sessions, with 90.25 acting as a key support level,” said Jateen Trivedi, VP Research Analyst at LKP Securities. “The rupee is expected to move within a 89.55–90.30 range.”
Gold prices on MCX fell nearly ₹900 to ₹1,36,950 despite relatively steady international prices. “Rupee volatility weighed on domestic bullion sentiment, even as broader global cues remained mixed,” Trivedi added. “Gold is expected to trade in a volatile range between ₹1,35,000 and ₹1,38,000 over the next few sessions.”
Cautious Outlook
Looking ahead, market participants remain cautious amid heightened geopolitical tensions and the approaching earnings season. “We expect the market to remain under pressure in the near term, dragged by concerns over US tariffs, ongoing geopolitical tensions and weak global market cues,” said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services. However, he noted that corporate earnings are expected to see a sharp improvement in the third quarter, which could provide some support to sentiment in the coming sessions.
Published on January 8, 2026
