Indian equity benchmarks extended their losing streak into a third consecutive trading session on Wednesday, January 7, 2026, as global geopolitical worries and renewed threats of tariff hikes spooked investors.
Market Performance: A Day of Volatility
The benchmark 30-share BSE Sensex closed the day at 84,961.14, marking a decline of 102.20 points or 0.12 per cent. However, the trading session was marked by significant intraday volatility. The index witnessed a much steeper fall during the day, dropping by 445.85 points or 0.52 per cent to touch an intraday low of 84,617.49 before recovering some of the losses.
Key Factors Driving the Sell-Off
The primary drivers behind the market's weakness were external headwinds. Investors globally turned risk-averse due to escalating geopolitical tensions in several regions. Adding to the caution were fresh threats of increased import tariffs from major economies, which could disrupt global trade flows and corporate earnings. This combination created a perfect storm, leading to sustained selling pressure in the Indian markets, mirroring trends in other Asian and global bourses.
Broader Market Sentiment and Outlook
The persistent decline over three days indicates a shift in market sentiment from bullish to cautious. While the indices managed to pare some losses by the closing bell, the intraday plunge highlights the underlying nervousness among traders and institutional investors. Market analysts suggest that until there is clarity on the global geopolitical front and trade policies, volatility is likely to persist. The focus now shifts to domestic cues and quarterly corporate results for direction, but global factors are expected to remain the dominant theme in the near term.
The broader NSE Nifty also ended in negative territory, aligning with the Sensex movement. The consistent outflow of foreign funds and a strengthening US dollar further contributed to the pressure on Indian equities. Experts advise investors to adopt a selective and phased investment approach during such periods of uncertainty.
