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Sensex, Nifty trade lower amid rising geopolitical tensions
Jan-07-2026

Indian equity benchmarks made a negative start on Wednesday tracking mixed cues from Asian peers amid the rising geopolitical tensions between the US and Venezuela as well as China and Japan on escalating tensions over Taiwan. Sensex and Nifty were trading lower in early deals amid foreign fund outflows. Foreign investors net sold shares worth Rs 107.63 crore on Tuesday. However, downside remained capped as traders took some encouragement with the commerce ministry’s statement that India and the European Union (EU) will hold ministerial-level discussions on January 8-9 in Brussels to bridge differences in the proposed free trade agreement and push for an early conclusion of negotiations.

On the global front, Asian markets were trading mixed as a cautious undertone prevailed after China banned exports of dual-use goods that can serve both civilian and military purposes to Japan, citing national security concerns amid escalating tensions over Taiwan. Besides, Japan's S&P Global Services PMI eased to 51.6 in December 2025, below the preliminary estimate of 52.5 and November's reading of 53.2.

Back home, auto stocks remained in focus as Federation of Automobile Dealers Associations said retail sales of vehicles across categories in India in 2025 grew by 7.71 per cent at 2,81,61,228 units as compared to 2,61,45,445 in 2024, with GST 2.0 helping overcome a subdued start to the year.

The BSE Sensex is currently trading at 84831.49, down by 231.85 points or 0.27% after trading in a range of 84617.49 and 85039.48. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.05%, while Small cap index was down by 0.07%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.15%, IT up by 0.65%, Healthcare up by 0.25%, Metal up by 0.09% and TECK up by 0.06%, while Telecom down by 0.81%, Utilities down by 0.72%, Power down by 0.60%, Realty down by 0.58% and Auto down by 0.58% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 4.00%, Infosys up by 0.91%, Reliance Industries up by 0.63%, HCL Technologies up by 0.48% and Trent up by 0.40%. On the flip side, HDFC Bank down by 1.18%, Bharti Airtel down by 1.15%, Bajaj Finance down by 1.08%, Maruti Suzuki down by 0.94% and Bajaj Finserv down by 0.92% were the top losers.

Meanwhile, in a move to expand bilateral relations, External Affairs Minister S Jaishankar has said that India views Luxembourg as a ‘very important’ partner, and the two countries can enhance bilateral cooperation in multiple areas, including fintech, space, and AI. Jaishankar is on a six-day visit to France and Luxembourg, and he held talks with Luxembourg Prime Minister Luc Frieden on ‘growing’ bilateral cooperation, including in finance, investment and tech sectors.

He also held delegation-level talks with Xavier Bettel, Deputy Prime Minister and Foreign Minister of Luxembourg. He said that apart from a ‘very solid trade account’ that the two countries share, New Delhi and Luxembourg can collaborate much more on many interesting issues, including fintech, space, the digital world, and AI.

In his meeting with Prime Minister Frieden, Jaishankar discussed growing cooperation in financial services, investments, technology and innovation. Frieden said that he had a ‘good exchange’ with the Indian minister. He said ‘Our talks focused on strengthening our nations’ bilateral ties and key global developments’.

The CNX Nifty is currently trading at 26108.20, down by 70.50 points or 0.27% after trading in a range of 26104.30 and 26166.00. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 3.85%, Apollo Hospital up by 1.16%, Hindalco up by 0.92%, Infosys up by 0.74% and Reliance Industries up by 0.58%. On the flip side, Cipla down by 2.74%, Tata Motors Passenger Vehicles down by 2.21%, Shriram Finance down by 1.22%, HDFC Bank down by 1.20% and Bajaj Finance down by 1.16% were the top losers.

Asian markets were trading mixed; Nikkei 225 slipped 460.08 points or 0.88% to 52,058.00, Hang Seng lost 252.45 points or 0.95% to 26,458.00, Taiwan Weighted declined 62.48 points or 0.2% to 30,513.82 and KOSPI dropped 15.37 points or 0.34% to 4,510.11. On the other hand, Jakarta Composite rose 22.09 points or 0.25% to 8,955.70, Shanghai Composite added 11.87 points or 0.29% to 4,095.54 and Straits Times was up 1.64 points or 0.03% to 4,741.61.
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