INDIA STOCKS-Indian shares decline as geopolitical tensions overshadow earnings optimism

By Bharath Rajeswaran and Vivek Kumar M

Jan 7 (Reuters) - Indian equity benchmarks edged lower on Wednesday as geopolitical tensions and U.S. tariff concerns dampened optimism around earnings growth.

The Nifty 50 .NSEI fell 0.26% to 26,111.9, while the Sensex .BSESN was down 0.23% at 84,870.36 as of 9:45 a.m. IST.

The Nifty was about 1% below its record high hit on Monday, while the Sensex stood 1.5% off its lifetime peak touched on Dec. 1.

The benchmarks have declined for a second straight session, retreating from near-record levels amid fresh tariff threats from U.S. President Donald Trump linked to India’s Russian oil purchases.

"Near-term sentiment remains cautious and markets remain sensitive to trade and geopolitical developments, fluctuations in crude oil prices ahead of the results season starting next week," said Hitesh Tailor, research analyst at Choice Equity Broking.

Ten of the 16 major sectors declined. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 traded flat.

Among stocks, Titan Company TITN.NS rose 3.5% after the watch and jewellery maker's December quarter update showed a sharp 40% surge in revenue, driven by the jewellery segment.

Jewellery retailer Senco Gold SENC.NS climbed 9.3% after a robust business update from the company for the December quarter. The company also reiterated confidence in achieving more than 25% growth in fiscal year 2026.

Tata Motors Passenger Vehicles TAMO.NS fell 2.3%, extending losses for the second day, after it said that JLR sales fell in the December quarter in its business update.

Indian Hotels IHTL.NS fell 2.5% after Morgan Stanley downgraded the company to "equal-weight" from "overweight".

Reliance Industries RELI.NS rose 0.8%, following a 4.5% slide in the previous session after CLSA removed the oil-to-telecom conglomerate from its model portfolio and the company said it is not expecting any Russian oil deliveries in January.

Telecom tariff hike, Jio's listing and growth revival in retail will likely drive Reliance higher in 2026, said Jefferies and Morgan Stanley.