HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Sensex, Nifty trade flat amid US President’s fresh tariff threats to India
Jan-06-2026

Indian equity benchmarks made negative start on Tuesday despite firm global cues. Sensex and Nifty were trading flat in early deals amid US President’s fresh tariff threats to India. Adding more pessimism, apex exporters' body Federation of Indian Export Organisations (FIEO) said that beyond the existing 50 percent tariff, a further hike by the US, will badly hit Indian exports, particularly in traditional sectors of exports. However, downside remained capped as SBI Research report said that the crude oil prices are expected to soften significantly in 2026, and they could touch $50/barrel by June 2026.

On the global front, Asian markets were trading higher, following the broadly positive cues from Wall Street overnight, extending the record global rally in equities with particular gains in Hong Kong, China and Japan. The markets overlooked concerns about the latest geopolitical developments involving the US and Venezuela as well as the ongoing Russia-Ukraine war.

Back home, highway sector stocks were in focus as the rating agency India Ratings and Research (Ind-Ra) has said that India's highway sector is facing challenges, with muted central road award activity for the past two years, leading to increased competition and persistent project execution issues.

The BSE Sensex is currently trading at 85348.14, down by 91.48 points or 0.11% after trading in a range of 85007.67 and 85356.47. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.12%, while Small cap index was up by 0.01%.

The top gaining sectoral indices on the BSE were Metal up by 1.04%, Healthcare up by 0.63%, IT up by 0.53%, TECK up by 0.48% and Basic Materials up by 0.46%, while Energy down by 1.01%, Oil & Gas down by 0.81%, Consumer Discretionary down by 0.27% and FMCG down by 0.20% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 2.45%, Bajaj Finserv up by 1.36%, HCL Technologies up by 0.93%, TCS up by 0.93% and Asian Paints up by 0.83%. On the flip side, Trent down by 6.75%, Reliance Industries down by 2.66%, HDFC Bank down by 1.37%, Eternal down by 1.12% and Adani Ports & SEZ down by 0.95% were the top losers.

Meanwhile, the SBI Research report has said that crude oil prices are likely to soften faster in 2026, and this will relatively average the CPI inflation decisively below 3.4 per cent for fiscal year 2026-27 (FY27). It noted that crude oil prices could touch $50/barrel by June 2026. It further said that benign energy prices will impact the Gross Domestic Product (GDP) outlook favourably, and added that the expected impact on annual GDP growth is around 10-15 bps.

It highlighted that the medium-term trends since 2022 for Brent and Indian basket show that there has been a downward trend in crude prices. It pointed out that the latest event in Venezuela has not impacted the price significantly on the upside. Brent crude price has been hovering around $60 per barrel for the last one week. It said since oil prices constitute the largest component in the import basket and cannot be substituted with domestic production in the short term, contraction of the import bill on account of crude import prices will impact the rupee.

It said analysis, using recent history, suggests that assuming USD/INR base price of Rs 90.28, the 14 per cent expected correction may result in 3 per cent appreciation in the rupee, which is approximately Rs 87.5 per dollar, and a part of this could play out in Q4 FY26. Meanwhile, the US Energy Information Administration estimates that the Brent crude oil price will fall to an average of $55 per barrel in the first quarter of 2026, largely driven by the buildup of inventory.

The CNX Nifty is currently trading at 26256.80, up by 6.50 points or 0.02% after trading in a range of 26144.70 and 26259.35. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 2.99%, Apollo Hospital up by 2.53%, ICICI Bank up by 2.52%, Bajaj Auto up by 2.41% and Bajaj Finserv up by 1.35%. On the flip side, Trent down by 6.78%, Reliance Industries down by 2.71%, Tata Motors Passenger Vehicles down by 1.79%, HDFC Bank down by 1.36% and Eternal down by 1.12% were the top losers.

All Asian markets were trading higher; Hang Seng jumped 508.76 points or 1.89% to 26,856.00, Nikkei 225 surged 459.2 points or 0.89% to 52,292.00, Taiwan Weighted rose 278.94 points or 0.93% to 30,383.98, Straits Times gained 52.53 points or 1.12% to 4,733.03, Shanghai Composite strengthened 45.96 points or 1.14% to 4,069.38, Jakarta Composite added 29.87 points or 0.34% to 8,889.06 and KOSPI was up by 8.63 points or 0.19% to 4,466.15.
  RELATED NEWS >>
Most Viewed >>
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.