Dalal Street experienced another weak session on Tuesday, with Indian markets continuing to face pressure in 2026. Both benchmark indices ended in the red, extending losses from the start of the year amid cautious investor sentiment.
As of 3:30 PM, the S&P BSE Sensex dropped 1,065.71 points to 82,180.47, while the NSE Nifty50 fell 353 points to 25,232.50, both declining over one percent. The weak performance follows a challenging 2025, when Dalal Street was among the weaker markets globally.
IT stocks lead lossesInformation technology stocks were the biggest drag on the market. The Nifty IT index fell nearly 2%, with LTIMindtree (-6.53%), Mphasis (-2.38%), Wipro (-2.34%), Tech Mahindra (-2.23%), and HCLTech (-1.61%) among the worst performers. Weak global cues, concerns over client spending, and trade uncertainty pressured IT stocks across BSE and NSE.
Global trade concernsOngoing tensions between the US and Europe, particularly over tariffs linked to Greenland, weighed on market sentiment. Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said volatility is likely to persist until clarity emerges on these disputes or a US Supreme Court ruling potentially changes market dynamics.
Foreign fund sellingForeign institutional investors (FIIs) continued to withdraw funds, selling shares worth Rs 29,315.22 crore in January 2026 so far, while domestic institutional investors bought Rs 38,311.01 crore. Despite domestic support, FII outflows kept overall sentiment weak.
Broader market trendsThe broader market showed mixed performance. Nifty Midcap 100 (+1.89%) and Nifty Smallcap 100 (+2.17%) saw selective buying, while sectoral indices largely fell. Nifty Auto (+1.28%) and Nifty PSU Bank (+1.26%) gained, whereas Nifty IT (-1.85%), Nifty Realty (-4.49%), Nifty Pharma (-1.70%), and Nifty Consumer Durables (-2.33%) declined. India VIX fell 3.92%, suggesting some easing in near-term volatility.
Overall, weak global cues, trade policy uncertainty, heavy IT losses, and continued foreign fund selling kept markets under pressure. Until global trade clarity improves and fund flows stabilize, volatility on Dalal Street is likely to continue.
