Markets slip as US eyes 500% tariffs, geopolitical tensions rise

Indian equity markets slipped in early trade amid fears of 500% US tariffs, continued foreign selling and weak global cues

PGurus Newsdesk

January 8, 2026

Markets likely to remain range-bound near resistance levels

Tariff worries drag markets lower despite key support levels

Indian equity benchmarks opened lower on Thursday as investor sentiment weakened amid fresh threats of steep US tariffs, continued foreign portfolio investor (FPI) outflows, and rising geopolitical tensions.

The Nifty 50 opened at 26,106.50, slipping 34.25 points or 0.13 per cent, while the BSE Sensex declined 183.12 points or 0.22 per cent to start at 84,778.02.

Market participants remained cautious following reports that the United States is considering imposing tariffs of up to 500 per cent under a proposed Russia sanctions bill. The proposed legislation is expected to give Washington leverage against countries such as India, China and Brazil over their purchases of Russian oil.

Ajay Bagga, banking and market expert, said Indian markets were under pressure due to multiple negative cues. He pointed to continued FPI selling, heightened geopolitical tensions, and the absence of strong triggers ahead of the Union Budget. Bagga also highlighted that the US seizure of a Russian-flagged oil tanker on the high seas had further escalated tensions, weighing on global risk sentiment.

The pressure intensified after US Senator Lindsey Graham stated that President Donald Trump had approved the bipartisan “Sanctioning of Russia Act 2025”. The bill proposes a minimum 500 per cent duty on all goods and services imported from Russia, along with penalties on entities involved in Russian trade.

In the broader market, most NSE indices opened in the red. The Nifty 100 declined 0.19 per cent, while the Nifty Midcap 100 slipped 0.10 per cent. Only the Nifty Smallcap index showed marginal resilience in early trade.

Sector-wise, selling pressure was visible across the board. Nifty Metal led losses, falling 0.67 per cent, followed by Nifty Pharma at 0.55 per cent. Nifty Auto declined 0.47 per cent, Nifty PSU Bank fell 0.23 per cent, and Nifty IT slipped 0.07 per cent.

Ponmudi R, CEO of Enrich Money, said markets remain cautious as key indices face stiff resistance levels. He added that elevated geopolitical risks, tariff-related uncertainty, and sustained FPI outflows are likely to keep markets range-bound in the near term, with direction depending on follow-through above resistance levels.

Meanwhile, gold and silver prices eased after major commodity indices underwent rebalancing between January 8 and 14. Brokerages estimate selling of nearly USD 7 billion each in gold and silver over the next five trading sessions.

Other Asian markets also traded lower, as tariff fears and geopolitical risks linked to the US and Russia continued to weigh on investor sentiment.

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