Indian equities closed lower on January 8, 2026, as sustained foreign investor selling weighed on benchmarks, even as domestic institutional buying provided partial support. Global cues remained mixed, with a sharp rally in global defence stocks after fresh comments from US President Donald Trump.
The BSE Sensex fell 780 points to 84,810, while the NSE Nifty declined 263 points to 25,876. Bank Nifty dropped 304 points to 59,686. Broader markets underperformed, with the Nifty Midcap index down 948 points to 46,724 and the Nifty Smallcap index falling 1,023 points to 50,794.
Foreign institutional investors (FIIs/FPI) remained net sellers, offloading equities worth ₹3,367.12 crore, while domestic institutional investors (DIIs) bought shares worth ₹3,701.17 crore, cushioning the decline. On a month-to-date basis in FY25–26, FIIs have sold ₹8,017.51 crore, while DIIs have infused ₹12,307.18 crore into equities.
Market volatility edged higher, with the India VIX rising 0.65 points, or 6.53%, to 10.60. The NSE 100 price-to-earnings ratio stood at 22.53, indicating steady valuations despite recent pressure.
In commodities, Brent crude traded at $60 per barrel. Gold was priced at $4,429 per ounce, translating to ₹1,36,950, while silver was quoted at ₹2,40,150. The rupee closed at 90.03 against the US dollar. The 6.33% 2035 government security yield rose to 6.63%, compared with 6.61% previously. The dollar index stood at 98.78.
Overnight, global markets tracked geopolitical developments after US President Donald Trump said he would request a roughly 50% increase in the US military budget. The remarks triggered a rally in global weaponry and defence stocks, extending a strong start to the year for the sector amid rising geopolitical tensions.
