The Indian stock market experienced a sharp and broad-based decline on Thursday, January 8, reflecting weak global cues and investor caution. The Sensex suffered its largest single-day drop in over four months, while the Nifty 50 slipped below the 25,900 mark.The 30-share Sensex closed at 84,180.96, down 780 points, or 0.92%, marking the steepest single-day decline since August 26, 2025, when the index fell 1.04%. Meanwhile, the Nifty 50 ended at 25,876.85, down 264 points, or 1.01%. Midcap and smallcap indices were hit harder, each tumbling 2%. Investors lost about ₹8 lakh crore in a single session as the overall market capitalisation of BSE-listed firms dropped to below ₹472 lakh crore from nearly ₹480 lakh crore in the previous session.
Renewed concerns over Trump tariffs spooked investors. According to Republican Senator Lindsey Graham, US President Donald Trump has backed the Russia sanctions bill, which could raise US tariffs to at least 500% on countries that buy Russian oil.Geopolitical uncertainties, foreign capital outflows, and caution ahead of Q3 earnings remain other key concerns contributing to the market downtrend."Domestic markets extended losses as sentiment turned cautious amid renewed concerns over US tariffs and persistent FII outflows, overshadowing optimism around earnings growth," Vinod Nair, Head of Research, Geojit Investments, observed."Metal shares declined on profit booking following a retreat in global prices, while oil and gas stocks fell on worries over the US-Venezuela crisis. In the near term, markets are expected to remain cautious and trade range-bound, influenced by Q3 earnings and developments on US tariffs," Nair said. Within the Nifty 50 pack, Tata Consultancy Services, Hindalco Industries and JSW Steel were among the top laggards, falling up to 2 per cent. In contrast, ETERNAL and Adani Ports and Special Economic Zone were among the key gainers, rising up to 1 per cent. Market breadth remained negative, with about 1,479 stocks advancing, 1,767 declining and 171 remaining unchanged.