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Sensex, Nifty Dip on US-Venezuela Tensions & IT Stock Losses

Indian equity benchmarks traded with mild losses as caution over escalating US-Venezuela tensions and a slump in IT stocks overshadowed signs of improving corporate earnings. Analysts warn that major geopolitical events in 2026, including the Venezuela situation and ongoing Russia-Ukraine conflict, could seriously impact markets. Despite the near-term caution, the market may remain resilient due to bullish momentum and strong banking sector prospects. In global markets, Asian indices mostly advanced, while US markets ended mostly higher on the last trading day.

Key Points: Sensex Falls Over Geopolitical Tensions, IT Stocks Drag

  • Markets cautious over US-Venezuela tensions
  • IT sector leads losses
  • Support for Nifty at 26,150-26,200
  • Asian markets mostly advance
2 min read

Sensex, Nifty post mild losses over latest geo-political tensions

Indian markets trade flat with a negative bias as US-Venezuela tensions and IT sector losses offset positive earnings signals. Key levels and analysis.

"major geopolitical events at the start of 2026 could have serious consequences and could affect the market - Analysts"

Mumbai, Jan 5

The Indian benchmark indices traded flat with a mild negative bias on Monday over losses in IT stocks and the latest US-Venezuela tensions.

Even as Indian companies showed signs of improving quarterly earnings, optimism was blunted by caution over the implications of US military action in Venezuela.

As of 9.30 am, Sensex eased 62 points, or 0.07 per cent to 85,699 and Nifty gained 9 points, or 0.03 per cent to 26,319.

Main broad-cap indices performed almost in line with benchmark indices, with the Nifty Midcap 100 unchanged, while the Nifty Smallcap 100 gained 0.36 per cent.

ONGC and SBI were among major gainers on the Nifty. Among sectoral gainers, Nifty IT was the major loser, down 1.41 per cent. In Nifty media, metal and PSU sectors were the major gainers up 0.84 per cent, up 0.70 per cent and 0.79 per cent, respectively.

Immediate support lies at 26,150-26,200 zone, and resistance placed at 26,450-26,500 zone, market watchers said.

Analysts said that major geopolitical events at the start of 2026 could have serious consequences and could affect the market.

The US action in Venezuela could destabilise global geopolitics. The Russia-Ukraine conflict is likely to continue, Iranian protests may worsen and the Iranian regime may react in light of US President Donald Trump's threat of intervention, and China may use the opportunity to annex Taiwan, they said.

A positive for India from the Venezuelan crisis would be medium to long-term bearish impact for crude, they said.

The market may remain resilient in the short term due to its all-time high and bullish momentum. The Bank Nifty is strong due to strong credit growth, they said, adding that Q3 banking and financial results would be impressive.

In Asian markets, China's Shanghai index added 1.07 per cent, and Shenzhen gained 1.87 per cent, Japan's Nikkei added 2.557 per cent, while Hong Kong's Hang Seng Index eased 0.12 per cent. South Korea's Kospi advanced 2.87 per cent.

The US markets were mostly in the green zone on the last trading day even as Nasdaq lost 0.03 per cent. The S&P 500 gained 0.19 per cent, and the Dow moved up 0.66 per cent.

On January 2, foreign institutional investors (FIIs) bought equities worth Rs 290 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 677 crore.

- IANS

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Reader Comments

P
Priya S
It's frustrating to see our markets so sensitive to events happening on the other side of the world. We should be more resilient. Good to see PSU banks and ONGC doing well though. Hope the banking results are as impressive as predicted.
V
Vikram M
The article mentions China might use this as an opportunity regarding Taiwan. That's the real worry for India, not Venezuela. Any aggression in our neighbourhood directly impacts our strategic interests. The market is right to be cautious.
R
Rohit P
Midcap and Smallcap holding steady is a good sign for retail investors like me. The real action is there, not just in the heavyweights. FIIs buying is also a positive signal. Let's see if the support at 26,150 holds.
S
Sarah B
Living in India for 5 years now. The interconnectivity of global markets is fascinating. One event in South America causes a ripple in Mumbai. While the short-term dip is minimal, the analysts' warning about 2026 geopolitical events is sobering. Long-term planning is key.
K
Karthik V
With respect, I think the article focuses too much on overseas factors. What about domestic triggers? Monsoon progress, RBI's stance, the upcoming budget... these matter more for the Indian investor's portfolio. The 'mild loss' headline is just noise for the day trader.

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