The Indian equity benchmarks extended their losses into a second consecutive session on Tuesday, January 6, closing in the red as heavyweight stocks like Reliance Industries and HDFC Bank exerted significant downward pressure. The broader market sentiment remained weak, overshadowing gains in select sectors like pharmaceuticals.
Benchmarks and Broader Markets Under Pressure
The S&P BSE Sensex ended the trading day at the 85,000 mark, registering a decline of 0.51%. The NSE Nifty 50 index closed at 26,175, down by 0.28%. The weakness was not confined to the frontline indices; the broader markets also reflected the cautious mood. Both the Nifty Midcap 100 and the Nifty Smallcap 100 indexes slipped by 0.15% each.
Heavyweights Lead the Decline
The sell-off was primarily driven by two index giants. Reliance Industries (RIL) was the biggest loser on the Nifty 50, plummeting 4.55%. This sharp fall followed the company's clarification on social media platform X, where it denied a Bloomberg report about three vessels carrying Russian crude heading to its Jamnagar refinery. RIL stated it does not anticipate any Russian crude deliveries in January.
This corporate statement comes against the backdrop of geopolitical trade tensions. US President Donald Trump had recently warned of imposing higher tariffs on Indian exports if India continues to purchase Russian oil. The comprehensive trade deal between India and the US remains under discussion and is yet to be finalized.
Joining RIL in pulling down the indices was HDFC Bank, which fell 1.6%. Other notable stocks that featured among the top losers for the day included Trent, Kaynes Technology, Swiggy, and Steel Authority of India (SAIL).
Sectoral Performance: A Mixed Bag
The sectoral landscape presented a divided picture. On the losing side, the Nifty Oil & Gas index was the worst performer, dropping 1.67%, heavily influenced by Reliance's slide. It was followed by losses in the Nifty Media, Nifty Chemicals, and Nifty Realty indices, which fell between 0.27% and 1.15%.
However, not all sectors faced selling pressure. The Nifty Pharma index emerged as the standout gainer, rallying impressively by 1.63%. Support also came from the PSU banking, IT, and Metal sectors. The Nifty PSU Bank, Nifty IT, and Nifty Metal indices managed to close in the green, posting gains in the range of 0.3% to 0.6%.
The market's direction continues to be influenced by a combination of global geopolitical developments, corporate news flow, and domestic sectoral rotations, with investors appearing cautious in the first week of the new year.
