(Image Source: Stock Images)
Stock markets opened lower on Wednesday, January 7, 2026, with both the Sensex and Nifty 50 struggling after recent gains. The Sensex dropped 376 points or 0.44 percent to 85,063, while Nifty 50 fell 71.6 points or 0.27 percent to 26,178.70. Investors are taking profits after last week’s rally pushed indexes near record highs. Added to that are fresh concerns about US tariffs and weakness in oil stocks.
How Different Sectors Performed
Pharma and IT Gain While Energy Falls
Pharma stocks rose 1.7 percent, the strongest performer of the day. IT stocks climbed 0.61 percent. PSU banks gained 0.6 percent after better-than-expected quarterly numbers came out. But energy and oil stocks fell hard, with infrastructure and capital goods also down between 0.6 and 1.6 percent.
Midcap and smallcap indexes both declined slightly, around 0.2 percent each. The weakness was fairly broad across the market rather than concentrated in just one or two sectors.
Reliance Industries Gets Hit Hard
Reliance Industries fell more than 4 percent, its worst single day in over eight months. The sell-off ties to renewed US tariff threats linked to Indian oil purchases from Russia. With Reliance expecting zero Russian oil deliveries in January, investors worried about lower profits from refinery operations.
The big decline in Reliance, which is a heavyweight in the Nifty, dragged down the entire index by itself. Despite positive flows from Indian institutions, Reliance’s weakness was too much to overcome.
HDFC Bank is Also Down
HDFC Bank dropped 1.49 percent to Rs 962.95. The banking stock fell on general profit-taking as investors locked in gains from the previous week’s rally.
Who’s Buying and Who’s Selling
Domestic Money Strong, Foreign Money Out
Foreign investors sold ₹108 crore worth of stocks on Tuesday. But Indian domestic institutions more than made up for it by buying ₹1,749 crore. The net institutional flow stood at ₹1,641 crore, which kept the market from falling more sharply.
The domestic support comes from mutual funds receiving regular monthly SIP (Systematic Investment Plan) contributions from retail investors. This steady Indian buying has been a floor under the market despite foreign selling.
What Price Levels Matter Right Now
Nifty’s Trading Range
The Nifty is currently stuck between 26,000 and 26,370. If it breaks above 26,373, it could move higher toward 26,500 and then 26,800 to 26,900. Support is at 26,113, with strong buying expected between 26,023 and 25,968. If Nifty breaks below 26,000 to 25,900, that would signal real weakness.
Bank Nifty Holding Better
Bank Nifty actually rose 0.12 percent to 60,118.40, showing more strength than the overall market. If it clears 60,437, it could jump toward 60,700 and then 61,400. Support is at 59,500 and a bigger floor is around 58,800 to 59,000.
Which Stocks Went Up and Down
The Winners
Pharma was the clearest winner with most stocks gaining. Hindustan Copper and Hindalco jumped up to 6 percent each to fresh record highs as metal prices soared. Titan also hit record highs despite the broader market selling. IT stocks moved higher, though gains were mild.
The Losers
Reliance was the biggest loser, down 4 percent-plus. HDFC Bank fell 1.49 percent. Trent dropped 9 percent after disappointing quarterly business numbers, which hurt retail consumption plays. Oil-linked stocks were down across the board due to Reliance’s weakness and tariff talk.
What to Keep an Eye On
The 26,000 level on Nifty is critical. If it holds, the uptrend remains intact. If it breaks, that’s a real warning sign. Bank Nifty looks stronger than the overall market, which is positive. Individual stock moves based on earnings matter more than overall index direction right now.
Reliance and oil stocks will remain sensitive to any US tariff announcements. Pharma and IT could continue to do okay given they’re not as exposed to tariff risks. Domestic institutions keep buying on dips, which provides some support at lower levels.
