Indian equity benchmarks closed sharply lower on Friday, January 9, 2026, marking the fifth consecutive session of declines amid escalating US-India trade tensions. The BSE Sensex plummeted 604 points, or 0.72%, to settle at 83,576, while the NSE Nifty 50 shed 194 points, or 0.75%, ending at 25,683. This rout wiped out nearly Rs 9 lakh crore in market value over five days, with investors spooked by stalled trade negotiations and looming US tariffs under President Trump.
US Commerce Secretary Howard Lutnick triggered the fresh wave of selling with comments on the All-In Podcast, claiming a "done deal" on bilateral trade fell apart because Prime Minister Narendra Modi did not call President Trump to seal it. "We had it all set up... Modi didn't call," Lutnick said, adding that India now ranks lower in the US tariff "staircase" after deals with Indonesia, Philippines, and Vietnam. India's Ministry of External Affairs swiftly dismissed the remarks as "inaccurate," highlighting eight Modi-Trump calls in 2025 and multiple negotiation rounds that nearly finalized an agreement. Tensions escalated with Trump's backing for 500% tariffs on nations buying Russian oil, directly targeting major importers like India.
Sector-wise carnage was evident, with realty and banking leading the downside. The Nifty Realty index tumbled over 2%, pulling Adani Enterprises (-1.85%), Adani Ports (-1.80%), and UltraTech Cement lower. Banking heavyweights like ICICI Bank dropped 2.17%, reflecting broader financial sector jitters amid foreign outflows and currency weakness. Energy and metals also weakened on global cues and tariff risks.
| Sector | % Change | Top Losers |
| Realty | -2.1% | Adani Enterprises (-1.85%), Adani Ports (-1.80%) |
| Bank Nifty | -1.6% | ICICI Bank (-2.17%) |
| Oil & Gas | -1.8% | Reliance Industries |
| Metals | -1.4% | Tata Steel |
Foreign institutional investors (FIIs) amplified the pressure, offloading Rs 7,608 crore in the first two trading days of 2026, capping a staggering Rs 1.66 lakh crore exit from 2025. The rupee depreciated further, hovering near 85.50/USD, as domestic institutions stepped in to cushion some flows.
Looking ahead, eyes are on the US Supreme Court, expected to rule soon on the legality of Trump's emergency tariff powers, which could refund duties or reshape policy. Exporters warn of lost US orders without a swift India deal, given existing 50% tariffs already crimping volumes in textiles and gems. Despite headwinds, India's robust GDP trajectory and steady DII buying may aid stabilization if diplomatic channels reopen.
