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Indian Stocks Extend Losses as Trade Fears, Earnings Disappoint

Indian equity benchmarks extended their decline, closing lower as global risk appetite weakened following new US tariff threats. Sectoral weakness was broad-based, with energy, banking, and IT heavyweights leading the fall amid earnings disappointment. Analysts note investor caution is reinforced by foreign institutional selling and global uncertainties, expecting markets to trade sideways. The ongoing earnings season and geopolitical developments are seen as key triggers for future market direction.

Key Points: Indian Stocks Fall on Global Trade Fears, Weak Earnings

  • Markets extend weekly losses
  • Global trade fears weigh on sentiment
  • IT and banking stocks lead declines
  • Experts predict sideways consolidation
3 min read

Indian stocks extend losses into fresh week, risk appetite weakens

Sensex, Nifty extend losses amid global risk-off mood, US tariff threats, and domestic earnings disappointment. Experts see consolidation ahead.

"The broader market mirrored this weakness... indicating widespread selling rather than isolated sector moves. - Ajit Mishra"

New Delhi, January 19

Domestic benchmark equity benchmarks commenced the fresh trading week on a downward trajectory on Monday, as global risk appetite seemed to have faded following new international trade threats. The Sensex and Nifty closed 0.4 per cent lower each today.

Indian stock indices extended losses from the previous week. So far in 2026, they declined around 2 per cent each.

Most sectors ended lower, with heavyweights from energy, banking and IT leading the declines as earnings disappointment and macro concerns weighed on sentiment, said Ajit Mishra - SVP, Research, Religare Broking Ltd.

"The broader market mirrored this weakness, with both midcap and smallcap indices also slipping, indicating widespread selling rather than isolated sector moves," Mishra noted.

"In addition, weakness in the IT space, highlighted by a sharp fall in Wipro after softer revenue forecasts, added to the negative bias. Investor caution was also reinforced by ongoing global uncertainties, including fresh concerns around potential tariff actions by the US President, along with continued foreign institutional selling."

Going ahead, markets are expected to trade sideways, tracking global cues and ongoing earnings, while any escalation on the geopolitical front would remain a key overhang, said Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Global risk appetite weakened after US President Donald Trump announced new tariff threats against eight European nations, reigniting concerns of a potential US-EU trade dispute.

"This development triggered a broad risk-off mood across global equity markets, prompting investors to rotate toward safe-haven assets like gold," said Vinod Nair, Head of Research, Geojit Investments Limited.

With the Q3 earnings season progressing, stock-specific volatility is likely, particularly where performance has been mixed, Nair added. "Overall, given the blend of global uncertainty and domestic triggers, markets are expected to remain in a consolidation zone."

Sensex and Nifty cumulatively rose 8-10 per cent in 2025, lower than the recent-year trends.

Market participants remained cautious, with experts pointing to low foreign investor participation. Foreign portfolio investors remained net sellers in India in 2025, data showed. Overall, Indian equity markets had largely been choppy over the past months, barring some bullish days, as investors remained uncertain over the trade deal with the United States, which has imposed a 50 per cent tariff on Indian goods.

In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, the indices gained a mere 3 per cent each.

- ANI

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Reader Comments

P
Priya S
Not surprised at all. The markets have been jittery for months. Every time there's positive domestic news, a global issue pops up. The IT sector slump is particularly concerning as it's a major employer. Hope the earnings season brings some positive surprises to balance things out.
V
Vikram M
Time to buy the dip? Sensex and Nifty have given fantastic returns in the last few years. A 2% correction in January after such a run is normal. This is a good opportunity for SIP investors. Global issues will pass, but India's growth story is intact. 💪
S
Sarah B
Watching from the US. The Trump tariff announcements are causing ripples everywhere. It's not just an Indian problem, but global risk-off sentiment. Indian markets have held up relatively well compared to some others, to be honest. The consolidation phase makes sense.
R
Rohit P
The continuous FII selling is the real issue. They have been net sellers for a year now. Where is the domestic money? Our mutual funds and insurance companies need to step up more to provide stability. We can't be so dependent on foreign mood swings.
K
Kavya N
As a small investor, this sideways movement is frustrating. You see your portfolio in red every other day. But experts are right – patience is key. Maybe it's time to look at sectors less affected by global trade, like FMCG or pharma, for some stability.

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