Markets – New Delhi, January 5, 2026, 05:25 ET
- Nifty hit a fresh record before ending lower; Sensex also closed in the red
- IT shares led declines ahead of quarterly results and after broker caution
- Trade and geopolitical headlines kept investors on the defensive
Indian shares ended lower on Monday after paring early gains that pushed the Nifty 50 to a record high, as IT stocks slid and worries over possible additional U.S. tariffs dented sentiment. The Nifty fell 0.30% to 26,250.3 and the Sensex dropped 0.38% to 85,439.62. (source)
The retreat mattered because benchmarks had climbed for three straight sessions and kept printing new peaks, leaving little room for policy surprises. Investors are also positioning ahead of quarterly results next week, with IT earnings seen as an early read on export demand.
Trade risk moved back to the centre of the tape after U.S. President Donald Trump linked the tariff threat to India’s purchases of Russian oil, market participants said. The weekend U.S. strike on Venezuela added another layer of geopolitical uncertainty, keeping risk appetite fragile.
IT stocks led the slide, with the Nifty IT index — a sector gauge tracking India’s top technology firms — under pressure into the close. HCLTech, Tech Mahindra, Infosys and Wipro were among the notable laggards as brokers warned that the recovery in the sector may be uneven and results could come in soft.
Heavyweight financials also weighed. HDFC Bank fell after a December-quarter business update showed loans grew faster than deposits, a dynamic that can squeeze margins if banks struggle to raise fresh funding at reasonable costs.
Some pockets of the market held up on upbeat company updates. Defence supplier Bharat Electronics and Nestle India traded firmer, while real estate developer Sobha and CSB Bank climbed after strong quarterly numbers.
The benchmarks were deeper in the red earlier in the session, with the Sensex down about 404 points and the Nifty off roughly 104 points around 2:15 p.m. local time, while the rupee weakened to 90.24 per dollar. “The US action in Venezuela has the potential to further destabilise global geopolitics,” said V K Vijayakumar, chief investment strategist at Geojit Investments Ltd. 1
A broad-based pullback underlined the caution, with most major sectors ending lower even as a handful of stocks rallied on company-specific news. Small-caps outperformed while mid-caps slipped, reflecting selective buying rather than a risk-on shift.
