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EQUITY
Key gauges end lower for third day in row
Jan-07-2026

Indian equity benchmarks drifted lower for the third day in a row on Wednesday as geopolitical tensions and renewed concerns about potential US tariff hikes weighed on investor sentiment. Sustained foreign fund outflows also dragged the markets lower. Foreign institutional investors offloaded equities worth Rs 107.63 crore on Tuesday, according to exchange data. 

Some of the important factors in trade: 

MSME loans’ share doubles aided by public sector banks’ lending: Crisil Intelligence in its latest report has said that the share of loans to micro, small and medium enterprises has nearly doubled during January to October 2025 period, aided by public sector banks’ (PSBs) lending. 

India bank risk framework strengthened: Global rating agency Fitch said Indian banks are set to benefit from enhanced oversight by the Reserve Bank of India (RBI) and a more robust supervisory toolkit, which should reduce systemic risks and improve the operating environment.

Rupee rises against US Dollar: Indian rupee rose against the US dollar on possible intervention by the Reserve Bank of India (RBI) and a fall in global crude oil prices.

Auto stocks in watch: The Federation of Automobile Dealers Associations (FADA) has said that retail vehicle sales across all categories in India rose by 7.71% to 2,81,61,228 units in 2025, up from 2,61,45,445 units in 2024, with GST 2.0 helping overcome a subdued start to the year.  

Global front: European markets were trading mostly in red with investors digesting the latest batch of economic data from the region, and looking ahead to some crucial reports from the U.S., in addition to following the developments on the geopolitical front. Asian markets settled mostly higher despite tensions between China and Japan escalated, and weak U.S. data spurred hopes for more rate cuts. 

Finally, the BSE Sensex fell 102.20 points or 0.12% to 84,961.14 and the CNX Nifty was down by 37.95 points or 0.14% to 26,140.75.        

The BSE Sensex touched high and low of 85,075.99 and 84,617.49 respectively. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.47%, while Small cap index was up by 0.12%.

The top gaining sectoral indices on the BSE were IT up by 1.97%, Consumer Durables up by 1.25%, TECK up by 0.93%, Healthcare up by 0.42% and Capital Goods up by 0.41%, while Utilities down by 0.80%, Oil & Gas down by 0.76%, Auto down by 0.68%, Telecom down by 0.61% and Energy down by 0.40% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 3.94%, HCL Technologies up by 1.99%, Tech Mahindra up by 1.80%, Infosys up by 1.72% and Sun Pharma up by 1.30%. On the flip side, Maruti Suzuki down by 2.78%, Power Grid Corporation down by 1.66%, HDFC Bank down by 1.38%, Asian Paints down by 1.34% and Tata Steel down by 1.32% 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’.

CNX Nifty touched high and low of 26,187.15 and 26,067.90 respectively. There were 20 stocks advancing against 30 stocks declining on the index.     

The top gainers on Nifty were Titan Company up by 3.94%, HCL Technologies up by 2.36%, Wipro up by 1.79%, Tech Mahindra up by 1.76% and JIO Financial Services up by 1.73%. On the flip side, Cipla down by 4.28%, Maruti Suzuki down by 2.81%, Tata Motors Passenger down by 1.60%, Power Grid Corporation down by 1.60% and Max Healthcare down by 1.59% and were the top losers.

European markets were trading mostly in red; Germany’s DAX gained 228.6 points or 0.92% to 25,120.80, while UK’s FTSE 100 decreased 65.63 points or 0.65% to 10,057.10, and France’s CAC fell 10.53 points or 0.13% to 8,226.90.

Asian markets settled mostly higher on Wednesday tracking Wall Street’s fresh records overnight on tech gains and as weak US data spurred hopes for more interest rate cuts. Data showed that the US service sector expanded at the weakest pace of growth since April, with the S&P Global US Services PMI Business Activity Index slipping to 52.5 in December from 54.1 in November. Meanwhile, investors continued to shrug off worries about the US attack on Venezuela over the weekend and looked ahead to the release of key US economic data this week that could influence the Federal Reserve's interest rate trajectory. China's Shanghai Composite ended marginally higher amid optimism over China’s progress in artificial intelligence and other advanced technologies. However, Japan’s Nikkei dropped as the ongoing geopolitical tensions between China and Japan escalated after China imposed export controls on military-use products to Japan following remarks made by PM Sanae Takaichi on Taiwan last year.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

4,085.77

2.11

0.05

Hang Seng

26,458.95

-251.50

-0.94

Jakarta Composite

8,944.81

11.20

0.13

KLSE Composite

1,676.83

4.48

0.27

Nikkei 225

51,961.98

-556.10

-1.06

Straits Times

4,747.62

7.65

0.16

KOSPI Composite

4,551.06

25.58

0.57

Taiwan Weighted

30,435.47

-140.83

-0.46
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