On Monday, January 5, 2026, Indian stock market benchmarks ended in negative territory, dragged by a selloff in IT stocks and due to trade worries mounting after US President Donald Trump warned of higher tariffs on Indian goods.
After opening slightly higher earlier in the day, equity benchmark index Nifty 50 touched a record high and slipped into the negative territory. At the close, the Nifty 50 closed lower by 78.25 points, or 0.30%, at 26,250.30, snapping a 3-day rally, while the Sensex slipped 322.39 points, or 0.38%, to settle at 85,439.62. Meanwhile, India VIX surged by 6% and settled above the level of 10.
Markets remained under pressure due to a combination of sector-specific weakness and rising global uncertainties. IT stocks saw broad-based selling, with the Nifty IT index falling around 1.43% as concerns over potential US tariffs overshadowed positive business updates and expectations of better quarterly earnings.
Adding to the cautious mood were renewed geopolitical tensions and trade-related uncertainty. Comments from the US leadership on possible tariff hikes against India, along with broader global developments, raised concerns about future trade relations and geopolitical stability.
Stock-Specific Highlights
Among individual stocks,
- Real estate developer Sobha share price climbed 5.79% on 52.3% Q3 sales jump.
- Ujjivan Small Finance Bank share price gained 4.90% after Q3 loan book and deposits surged over 20%.
- Index heavyweight HDFC Bank share price sheds 2.41% after quarterly update.
- India’s largest NBFC’s Bajaj Finance share price falls 1.18%, after its update shows assets growth moderated to 22% from 24% in Q2.
Nifty Realty - Top Gainer
On the sectoral front, 6 out of all 11 sectoral indices closed in positive territory. The Nifty Realty index emerged as the top-gaining sector with gains of 2.07%, extending its winning streak to 4th consecutive sessions. Additionally, the Nifty FMCG, Nifty Media, and Nifty Metal indices advanced by over 0.5%. On the other hand, the Nifty IT index was the top losing sector, declining by 1.43%, recording the biggest intraday loss in the last 2 months.
Broader Markets End Mixed
On Monday, the broader market indices ended on a mixed note. The Nifty Midcap 100 index closed down 0.16%, and the Nifty Smallcap 100 jumped 0.53%.
Nifty 50: Top Pullers and Draggers of the Day
The key drivers of the index gains were:
- ICICI Bank: +26.00 points
- Axis Bank: +12.32 points
- Bharat Electronics: +8.01 points
On the other hand, these stocks dragged the index:
- HDFC Bank: -77.48 points
- Infosys: -27.88 points
- Reliance Industries: -22.65 points
Market Breadth
As of January 5, 2026, market breadth was in favour of declining stocks. Out of 3,258 stocks traded on the NSE, 1,208 advanced, 1,943 declined, and 107 remained unchanged.
A total of 129 stocks touched their 52-week highs, while 85 hit their 52-week lows. Additionally, 65 stocks were locked in their upper circuits, whereas 81 stocks were in lower circuits.
Disclaimer: The article is for informational purposes only and not investment advice.
