Indian equity benchmarks surrendered early gains to close in negative territory on Friday, January 9, 2026, pressured by persistent selling from foreign investors and resurfacing anxieties over global trade policies.
Market Retreats After Early Rebound
After opening on a positive note, market sentiment quickly turned sour. The key indices failed to hold onto their morning momentum, sliding into the red as the trading session progressed. The 30-share BSE Sensex declined by 78.84 points, settling at 84,102.12. The broader Nifty 50 mirrored this downward trend, also closing lower.
Dual Headwinds: FII Outflows and Tariff Fears
Analysts point to two primary factors behind the market's weakness. Firstly, continued outflows from Foreign Institutional Investors (FIIs) have drained liquidity and created selling pressure in key heavyweight stocks. This trend has been a consistent overhang on market performance in recent sessions.
Secondly, renewed concerns over potential tariff hikes in major global economies have sparked fears of a slowdown in trade and corporate earnings. These concerns have reignited volatility, making investors cautious and prompting profit-booking at higher levels.
Implications for Domestic Investors
The day's trading pattern underscores the heightened sensitivity of Indian markets to global fund flows and international trade developments. The brief rebound in early trade suggests there is underlying buying interest, but it is being overwhelmed by macro concerns. Market experts advise investors to brace for continued volatility in the near term and focus on fundamentally strong stocks during corrections.
The performance on January 9 highlights that while domestic macroeconomic indicators remain relatively stable, external factors can swiftly dictate the direction of the stock market. Traders will now closely monitor FII activity and any further developments on the global trade front for future cues.
