Equity benchmark indices Sensex and Nifty encountered heavy volatility in early trade on Wednesday, with investors staying on the sidelines amid persistent foreign fund outflows and global tariff-related uncertainties.
The 30-share BSE Sensex declined 53.88 points to 83,573.11 in early trade. The 50-share NSE Nifty dipped 16.55 points to 25,719.25.
From the 30-Sensex firms, Asian Paints, Tata Consultancy Services, Bajaj Finserv, InterGlobe Aviation, Sun Pharma and UltraTech Cement were among the biggest laggards.
1 January 2026
Get the latest issue of Outlook Business
However, Tata Steel, Bharat Electronics, NTPC and Axis Bank were among the gainers.
Foreign institutional investors offloaded equities worth ₹1,499.81 crore on Tuesday, while Domestic Institutional Investors (DIIs) bought stocks worth ₹1,181.78 crore, according to exchange data.
"Sentiment remains guarded amid ongoing geopolitical tensions, tariff-related uncertainties, persistent FII selling, and firmer crude prices. While select Asian markets are showing pockets of strength, global cues are mixed, with US indices ending overnight in the red," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
In Asian markets, South Korea's Kospi index, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index traded higher.
US markets ended lower on Tuesday.
"Elevated crude oil prices, persistent foreign outflows and fragile global cues are likely to keep volatility high, with market sentiment hinging on whether Nifty can decisively defend its key support or stage a convincing breakout above 26,100," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
Brent crude, the global oil benchmark, dipped 0.49% to $65.15 per barrel.
On Tuesday, the Sensex dropped 250.48 points or 0.30% to settle at 83,627.69. The Nifty edged lower by 57.95 points or 0.22% to 25,732.30.
