MUMBAI – The Indian equity markets witnessed a volatile opening on Monday, January 5, 2026. While the Nifty 50 briefly touched a fresh all-time high in early trades, the momentum quickly fizzled out as the heavyweight IT sector dragged down the indices following fresh tariff warnings from the United States.
Market Snapshot at 10:00 AM
The markets opened with a sense of “tug-of-war” between strong domestic banking updates and deteriorating global trade sentiment.
- Nifty 50: Reached a record 26,358.25 (+0.11%) before slipping into the red.
- BSE Sensex: Traded lower by 0.17%, weighed down by tech giants.
- Sectoral Performance: 12 out of 16 sectors remained in the green, showing resilient broader market health despite the headline dip.
- Midcaps & Smallcaps: Continued to outperform the benchmarks, rising 0.1% and 0.5% respectively.
The “Russian Oil” Friction: US Tariff Pressures
The primary headwind for the day is the intensifying trade rhetoric from the Trump administration. The US has already implemented a 50% tariff on Indian exports, specifically citing India’s continued imports of Russian crude oil as the reason for the punitive portion of those duties.
On Monday, President Trump suggested these tariffs could be hiked even further if New Delhi does not pivot its energy policy. This has directly impacted IT stocks, which fell 1% at the open due to their heavy reliance on US-based revenue and fears of a broader trade war.
Banking Sector: The Silver Lining
Contrasting the gloom in IT, the Nifty Bank index surged 1.3%. Strong quarterly business updates from Public Sector Undertakings (PSUs) provided much-needed support:
- Punjab National Bank (PNB): Up 2% following robust loan growth data.
- Bank of Baroda: Up 2% on expectations of improved Net Interest Margins (NIMs).
Global Context: Venezuela and Oil
Asian markets were largely positive, though oil prices remained “choppy.” Investors are currently recalibrating their portfolios following the US military action in Venezuela and the capture of Nicolás Maduro. As Venezuela holds the world’s largest oil reserves, any shift in its governance has immediate implications for global energy prices, which in turn affects India’s fiscal outlook.
| Stock / Sector | Change | Catalyst |
| Nifty IT | -1.0% | US Tariff threats on Russian oil issue. |
| Nifty Bank | +1.3% | Strong Q3 business updates from PSUs. |
| Smallcap Index | +0.5% | Domestic retail investor confidence. |
| Crude Oil | Volatile | Geopolitical shift in Venezuela. |