India’s key stock indices started the week on a weak note today, with the Sensex and Nifty opening marginally lower due to heavy selling in information technology shares. This decline comes amid fresh worries over US President Donald Trump’s tariff threats against India and escalating tensions from the Venezuela conflict, where US forces captured President Nicolas Maduro.
Market Opens with Caution
The Bombay Stock Exchange Sensex fell 67.73 points, or 0.08 percent, to 85,696.38 in early trading on January 5, 2026. At the same time, the National Stock Exchange Nifty50 dropped 5.30 points, or 0.02 percent, to 26,323.25.
Traders pointed to global uncertainties as the main trigger. Trump’s recent comments on imposing tariffs on Indian goods have rattled investors, especially after he claimed India cut back on Russian oil buys to please him. This adds pressure on export-heavy sectors like IT, which rely on US clients.
The India VIX, a measure of market fear, jumped over 6 percent, signaling higher volatility ahead. Broader markets showed mixed signals, with midcap and smallcap indices reacting differently to the news.
IT Stocks Lead the Losses
Information technology companies bore the brunt of the selling pressure, pulling the overall indices down. The Nifty IT index tumbled 1.47 percent, making it the worst performer among major sectors.
Top IT firms saw sharp declines in their share prices during the opening session. This weakness stems from concerns that Trump’s trade policies could hurt outsourcing deals and raise costs for Indian tech giants.
Other sectors had varied performances. Fast-moving consumer goods dipped 0.09 percent, and pharmaceuticals slipped 0.04 percent. On the positive side, media rose 0.8 percent, public sector banks gained 0.78 percent, and metals advanced 0.66 percent.
Here is a quick look at the top losers in the IT space:
- HCL Technologies: Down 2.38 percent
- Infosys: Down 2.46 percent
- Wipro: Down 2.04 percent
- Tech Mahindra: Down 1.13 percent
- Tata Consultancy Services: Down 0.84 percent
Trump’s Tariff Threat and Its Impact
US President Donald Trump has ramped up rhetoric against India’s trade practices, threatening 50 percent tariffs on goods if New Delhi does not align with US energy policies. This follows India’s ongoing purchases of discounted Russian oil, which Trump views as a challenge to American interests.
Analysts say such tariffs could disrupt India’s export economy, particularly in services like IT and pharmaceuticals. In 2025, Indian equities already underperformed global peers, with the Sensex and Nifty trailing behind surges in markets like South Korea and Japan. Trump’s policies might extend this trend into 2026.
The threat ties into broader US foreign policy shifts. Trump’s administration has pushed allies to reduce reliance on Russian energy, and India’s resistance has drawn scrutiny. If implemented, these tariffs could lead to higher costs for US firms partnering with Indian companies, potentially slowing revenue growth for IT majors.
Venezuela Conflict Adds to Global Jitters
The market mood darkened further due to developments in Venezuela. US military action, dubbed Operation Absolute Resolve, led to the capture of President Nicolas Maduro over the weekend. Trump stated he would oversee the country until a stable transition occurs.
This event has spiked oil prices and global uncertainty, affecting energy-dependent economies like India. Venezuela’s oil reserves are significant, and any disruption could raise crude costs, impacting India’s import bill and inflation.
Investors are watching how this might influence US-India relations, especially with Trump’s hardline stance. In recent years, similar geopolitical events, like the 2022 Ukraine crisis, caused market swings, and experts fear a repeat.
Broader Market Trends and Outlook
While large-cap indices dipped, the broader market held up better. The Nifty Midcap 100 edged down 0.03 percent, but the Nifty Smallcap 100 climbed 0.35 percent, showing resilience in smaller firms.
Looking ahead, market watchers expect continued volatility. Earnings growth in the December 2025 quarter had boosted optimism, with the Nifty hitting record highs last week. However, external risks like tariffs and conflicts could cap gains.
For a snapshot of sector performances at opening:
| Sector | Change (%) |
|---|---|
| Nifty IT | -1.47 |
| Nifty FMCG | -0.09 |
| Nifty Pharma | -0.04 |
| Nifty Media | +0.80 |
| Nifty PSU Bank | +0.78 |
| Nifty Metal | +0.66 |
Traders advise caution, with focus on upcoming US economic data and any White House announcements.
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