Benchmark indices traded lower in early trade on Tuesday, January 6, 2026, as heavy selling in blue-chip stocks such as Reliance Industries and HDFC Bank, coupled with concerns over a fresh warning from the U.S. on potential tariff hikes, weighed on market sentiment.

The 30-shareBSE Sensexfell 431.95 points to 85,007.67, while the 50-shareNSE Niftydropped 105.6 points to 26,144.70 in early trade.

Among Sensex constituents,Trentslumped over 7% despite reporting a 17% rise in standalone revenue to ₹5,220 crore for the December quarter. Other laggards includedReliance Industries, Tata Motors Passenger Vehicles, Eternal, HDFC Bank, and Adani Ports.

On the upside,ICICI Bank, Bajaj Finserv, Asian Paints, and Tata Steelwere among the gainers.

Foreign institutional investors (FIIs) sold equities worth ₹36.25 crore on Monday, while domestic institutional investors (DIIs) picked up stocks worth ₹1,764.07 crore, according to exchange data.

“While broader sentiment remains cautious amid recent volatility driven by geopolitical developments and tariff concerns, underlying support continues from stable domestic macro fundamentals and steady institutional participation,” said Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm.

U.S. PresidentDonald Trumprecently stated that Prime Minister Narendra Modi was aware that “I was not happy” with India’s purchases of Russian oil and warned that Washington could impose additional tariffs on New Delhi “very quickly.” Trump made the remarks on Sunday aboard Air Force One en route to Washington DC from Florida.

In Asia, markets were trading higher, with South Korea’sKospi, Japan’sNikkei 225, Shanghai’sSSE Composite, and Hong Kong’sHang Sengshowing gains. U.S. markets ended higher on Monday.

Global crude prices were slightly lower, withBrent crudedipping 0.24% to $61.61 per barrel.

On Monday, January 5, the Sensex had declined 322.39 points, or 0.38%, to close at 85,439.62, while the Nifty fell 78.25 points, or 0.30%, to 26,250.30, despite touching a record intra-day high of 26,373.20.