Indian stocks dropped more than 2.5% last week, marking the biggest weekly fall since September, as worries about US tariffs and global tensions weighed on investors.
Weekly market snapshot
The Nifty 50 fell 2.45% and the Sensex slipped 2.55%. The decline came as traders braced for the start of the December‑quarter earnings season.
Why the market slipped
- US President warned of possible new tariffs on Indian imports, especially for countries buying Russian oil.
- Heightened geopolitical risks, including the Venezuela‑US standoff and concerns over Russian oil.
- Higher government borrowing expectations pushed bond yields up.
Foreign institutional investor (FII) activity
Foreign investors pulled about ₹11,800 crore in the first seven trading days of 2026, adding further pressure. The outflows were steady rather than panic‑driven.
Key events to watch
Analysts expect the upcoming Q3 earnings of major IT firms—HCL Tech, TCS, Infosys, Tech Mahindra and Wipro—to steer market direction. Reliance Industries’ results are also a focal point.
Important macro data due this week include India’s December CPI, food price inflation and U.S. core CPI, which could influence global interest‑rate expectations.
Analysts’ view
Experts say the market will stay range‑bound for the next few months. Strong domestic consumption, resilient services exports and trade diversification to the EU, ASEAN and the Middle East provide some cushion.
They advise investors to look for selective buying in companies with solid earnings prospects, while keeping an eye on FII flows and any positive news from India‑US trade talks.
Disclaimer
Remember, this is just an overview, not a prediction. Always do your own research or talk to a qualified advisor before making any investment decisions.