Indian equity benchmarks extended losses for a fifth straight session on January 9, 2026, as uncertainty over a US Supreme Court ruling on President Donald Trump's emergency tariffs deepened investor caution. The BSE Sensex closed down 604.72 points (0.72%) at 83,576.24, while the Nifty 50 fell 193.55 points (0.75%) to 25,683.30, marking the worst weekly performance in over three months with ~2.5% declines.
The Supreme Court delayed its decision on the legality of Trump's tariffs—imposed under the 1977 International Emergency Economic Powers Act—issuing no ruling on January 9 despite expectations, with the next opinion day set for January 14. These tariffs, up to 50% on Indian goods including a 25% penalty for Russian oil purchases, threaten $8.3 billion (10.4%) of India's $80 billion US exports in 2024, hitting MSMEs in textiles, gems, apparel, and chemicals hardest.
Export sectors bore the brunt: Nifty Energy plunged 5%—its steepest drop since February 2025—followed by Metals, Realty, and Auto (2-3% down). FIIs sold ₹3,769 Cr on Friday, totaling ₹11,790 Cr over five days, offset partially by DII buys of ₹5,596 Cr that day. India rejected US Commerce Secretary Howard Lutnick's claim that trade talks stalled due to PM Modi's inaction, noting eight Modi-Trump calls in 2025; a deal could cut tariffs to 15-16%.
Analysts see negotiations as the viable path forward, warning prolonged uncertainty could drag export growth despite diversification efforts; UN projects India's FY26 GDP at 6.6-7.2% amid tariff headwinds. Senator Lindsey Graham's proposed 500% tariffs on Russian oil buyers add further risks to $50B+ Indian exports. Markets remain fragile pending judicial or diplomatic clarity.
