India’s stock market experienced its steepest single-day decline in over four months on January 8, 2026, as investor concerns rose over potential U.S. tariffs tied to India’s ongoing purchase of discounted Russian oil. The sell-off wiped out nearly ₹8 lakh crore (approximately $96 billion) in market value in a single session, causing major indices to drop sharply and triggering market volatility.
Analysts said uncertainty surrounding potential U.S. trade measures and geopolitical tensions fueled risk-off sentiment among investors. The market is expected to remain sensitive to developments in U.S.-India trade relations, and further fluctuations could occur if tariff threats or trade disputes escalate. This decline highlights the impact of global energy imports and international policy on India’s financial markets and investor confidence.
