Indian equities enter 2026 on firmer footing on improved fundamentals

Equity benchmark indices Sensex and Nifty declined on Wednesday, extending their previous day’s losses, due to weakness in IT, consumption, and select banking blue-chip stocks amid escalating geopolitical tensions. Besides, persistent foreign fund outflows and fresh tariff-related uncertainties also unnerved investors, traders said.

The 30-share BSE Sensex dropped 244.98 points, or 0.29 per cent, to settle at 83,382.71. During the day, it fell 442.49 points or 0.52 per cent to 83,185.20. The 50-share NSE Nifty declined 66.70 points, or 0.26 per cent, to 25,665.60. Selective buying in markets and investors’ interest in metals, commodities, and energy stocks provided limited support to indices.

“Indian benchmark indices ended the session with marginal losses amid heightened volatility. The market witnessed selling pressure in the second half of the day, largely driven by continued FII outflows and uncertainty surrounding the US trade deal, which kept investor sentiment cautious,” according to Bajaj Broking Research.

From the 30-Sensex firms, Tata Consultancy Services, Asian Paints, Maruti, Sun Pharma, Hindustan Unilever, ICICI Bank, Kotak Mahindra Bank, Tech Mahindra, HDFC Bank and Larsen & Toubro were among the biggest laggards. On the other hand, Tata Steel, NTPC, Axis Bank and UltraTech Cement were among the gainers.

Investors remained hesitant amid mixed global cues and lingering geopolitical concerns. Overall sentiment was cautious to negative, with consolidation likely to persist as traders weigh FII outflows, global tariff pressures, and near-term technical supports, said Aakash Shah, Technical Research Analyst at Choice Equity Broking

Private Limited.