Indian and Global Markets Tumble on January 8, 2026

Indian benchmark indices plummeted precipitously today, with the Nifty 50 falling 1% or 264 points to 25,876 and the BSE Sensex falling almost 1% or 820 points to settle at 84,141. Due to a poisonous combination of domestic and international factors, the market value has dropped by almost Rs 7 lakh crore for the fourth consecutive day.

Primary Triggers Behind the Sell-Off

Widespread concerns about trade disruptions and increased import costs were aroused by President Donald Trump's planned tariffs, including a Russia tax bill that would affect India. Similar to muted results in Asian and US markets, geopolitical tensions increased as a result of Venezuela's political turmoil and wider global uncertainty.

The drag was mostly caused by heavyweight stocks in the consumer, banking, and metals sectors; profit booking in companies like Hindustan Zinc caused the Nifty Metal index to drop 3%. The decline was made worse by persistent FII selling—net outflows of Rs 1,528 crore on Wednesday alone—as foreign investors withdrew due to high valuations and inconsistent profits.

Global Context and Broader Fallout

Global markets mirrored the dip, with Asian rivals declining on similar indications and US indices under pressure from rising Treasury yields and tariff concerns. Due to profit-taking following recent rallies, India's consumer durables, real estate, and oil and gas sectors suffered the worst losses.

Although domestic buying offered some respite, analysts warn of ongoing volatility unless trade concerns subside. Despite India's strong fundamentals, the Sensex reached an intraday low of 84,111, highlighting fragile sentiment.