Dalal Street is expected to see a muted start to the session, with investors closely tracking developments around a fresh tariff warning from the United States and ongoing foreign fund outflows.

Early indicators point to a flat-to-weak opening. Gift Nifty futures were trading around 26,168.5 as of 8:16 am, suggesting the NSE Nifty 50 may open near its previous close of 26,140.75.

Markets have already been under pressure for several sessions. The Nifty 50 has slipped about 0.7% over the last three trading days, while the BSE Sensex has declined roughly 0.9% during the same period.

US tariff threat dents sentiment

Investor confidence has weakened after renewed concerns over India–US trade relations. US President Donald Trump warned of imposing steeper tariffs on Indian goods over India’s continued purchases of Russian oil, even as trade talks remain ongoing.

Adding to the anxiety, reports suggest that tariffs on countries such as India and China could rise by as much as 500% as early as next week. This follows President Trump clearing a bipartisan sanctions bill aimed at countries buying Russian oil and uranium.

Republican Senator Lindsey Graham, who sponsored the bill along with Democratic Senator Richard Blumenthal, said the legislation would give Washington stronger leverage over nations continuing energy trade with Russia.

The US has already imposed tariffs of up to 50% on select Indian goods, with a significant portion linked to India’s imports of discounted Russian crude.

FII selling adds pressure

Apart from global trade worries, persistent foreign investor selling has further dampened sentiment. Provisional data shows foreign institutional investors sold Indian equities worth Rs 1,528 crore on Wednesday. So far in January 2026, overseas investors have sold shares worth about $694 million, extending last year’s heavy outflows.

Key levels to watch

According to Aakash Shah of Choice Equity Broking, the Sensex faces immediate resistance around 85,400–85,500, while support is seen in the 84,400–84,500 range. A stronger base lies near 84,200, which could act as an accumulation zone if tested.

Sectorally, performance remains mixed. IT and consumer durable stocks have shown selective buying interest, while auto and infrastructure stocks continue to face selling pressure.

Nifty outlook

Analysts expect the Nifty to remain range-bound in the near term. Bajaj Broking Market noted that the index is in a consolidation phase after last week’s strong rally, with key support placed between 26,000 and 25,900. A sustained move above 26,187 could open the door for an upside towards 26,350–26,500 levels in the short term.

With rising global trade risks, uncertainty over steep US tariffs and steady foreign selling, Indian equities are likely to remain cautious at the open, with investors watching global cues and technical levels closely through the session.