Tariff jitters extend selloff; Sensex drops 605 pts, Nifty below 25,700

Key equity benchmarks ended sharply lower for a fifth straight session, with the Nifty closing below 25,700, as investor caution intensified ahead of a US Supreme Court ruling on the legality of American tariffs. An early attempt at a rebound quickly fizzled, with indices turning decisively lower within minutes of the open. Sentiment also remained under pressure amid sustained foreign institutional investor selling, weak global cues and firm crude oil prices. Auto and consumer durables stocks led the decline, while energy, IT and PSU bank shares bucked the trend and closed higher.

The S&P BSE Sensex tumbled 604.72 points or 0.72% to 83,576.24. The Nifty 50 index dropped 193.55 points or 0.75% to 25,683.30. In five consecutive trading sessions, the Sensex declined 2.54% while the Nifty fell 2.45%.

ICICI Bank (down 2.09%), Bajaj Finance (down 1.08%) and HDFC Bank (down 0.81%) dragged the Nifty lower today.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index tanked 0.90% and the S&P BSE Small-Cap index declined 1.74%.

The market breadth was weak. On the BSE, 1,062 shares rose and 3,104 shares fell. A total of 176 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 3.06% to 10.93.

Numbers to Track:

The yield on India's 10-year benchmark federal paper remained unchanged at 6.630

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 90.1675 compared with its close of 89.9025 during the previous trading session.

MCX Gold futures for 5 February 2026 settlement rose 0.46% to Rs 138,375.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.19% to 99.06.

The United States 10-year bond yield rose 0.07% to 4.188.

In the commodities market, Brent crude for March 2026 settlement added 17 cents or 0.27% to $62.16 a barrel.

Global Markets:

European market advanced on Friday as investors assessed evolving economic cues and rising social pressures across the region.

Most Asian market ended higher. China's consumer prices rose 0.8% year-on-year, according to data from the National Bureau of Statistics, following a 0.7% increase in November.

In the U.S., investors are awaiting two key catalysts on Friday. First, the Supreme Court could issue a ruling on the legality of President Donald Trump's tariffs, which could have an impact on trade policy and the nation's fiscal situation. Second, the December jobs report will be out on Friday morning.

Overnight in the U.S., the Dow Jones Industrial Average rose while the Nasdaq Composite came under pressure as investors moved away from technology stocks. The Dow Jones Industrial Average climbed 270.03 points, or 0.55%, and ended at 49,266.11; the S&P 500 advanced 0.01% and closed at 6,921.46, while The tech-heavy Nasdaq dropped 0.44% and settled at 23,480.02.

Stocks in Spotlight:

Indian Energy Exchange shares slumped 7.76%. The company clarified that media reports on the market coupling case were based on a routine hearing before Electricity Appellate Tribunal, with no fresh order passed. IEX said the move was market driven and all developments, including Central Electricity Regulatory Commission's corrigendum on its earlier directions, have already been disclosed.

Elecon Engineering Company dropped 15.79% after the company's consolidated net profit declined 33.1% to Rs 71.99 crore despite a 4.3% rise in revenue from operations to Rs 551.74 crore in Q3 FY26 over Q3 FY25.

JSW Steel rose 0.35%. The company recorded consolidated steel production of 7.48 million tonnes in Q3 FY26, marking a 6% year-on-year (YoY) increase compared with 7.03 million tonnes in Q3 FY25.

Power Grid Corporation of India shed 0.37%. The company has been declared as successful bidder under tariff based competitive bidding (TBCB) for the development of 3GW transmission system in Davanagere, Karnataka.

Brahmaputra Infrastructure added 2.11% after the company received a letter of acceptance (LoA) from the Office of the Chief Engineer, PWD (R&B), Jammu, for balance work related to the construction of the new Legislature Complex at Jammu.

Bharat Heavy Electricals rose 0.88% after the company announced a major order win worth around Rs 5,400 crore, snapping the previous session's sharp decline.

Highway Infrastructure rose 0.81%. The company announced that it has entered into a contract agreement worth Rs 328.77 crore with the National Highways Authority of India (NHAI).

Ravindra Energy fell 1.51%. The company has received 13 letter of award (LOA) from Hubli Electricity Supply Company (HESCOM) for setting up aggregate capacity of 62 MW(AC) solar power generators (SPGs) project in Karnataka.

Indo Tech Transformers fell 2.21%. The company announced that it has secured an order worth Rs 64.99 crore from ReNew Wind Energy (Jamb) for the manufacture and supply of six 220 kV-165 MVA transformers.

Power Mech Projects shed 0.37%. The company's wholly owned subsidiary, PM Green, secured an order worth Rs 3,126 crore from West Bengal State Electricity Distribution Company (WBSEDCL).

IPO Update:

The initial public offer (IPO) of Bharat Coking Coal received bids for 2,75,39,11,800 shares as against 34,69,46,500 shares on offer, according to stock exchange data at 16:40 IST on Friday (9 January 2026). The issue was subscribed 7.94 times.

The issue opened for bidding on today (9 January 2026) and it will close on Tuesday (13 January 2026). The price band of the IPO is fixed between Rs 21 and 23 per share. An investor can bid for a minimum of 600 equity shares and in multiples thereof.

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