INDIA STOCKS-India's stock benchmarks set for worst day in over four months on renewed tariff worries

By Bharath Rajeswaran and Vivek Kumar M

Jan 8 (Reuters) - Indian shares were poised for a fourth straight decline on Thursday, with benchmarks heading for their worst session in more than four months amid intensifying U.S. tariff worries.

The Nifty 50 .NSEI fell about 1% to 25,884.15 and the Sensex .BSESN traded 0.89% lower at 84,207.45, as of 1:48 p.m. IST. Both benchmarks are poised to log their biggest single-day drop since August 26, 2025.

All 16 major sectors fell. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 slipped 1.8% each.

The Nifty 50 index has fallen 0.7% in the last three sessions, and the Sensex 0.9%, after U.S. President Donald Trump warned of higher tariffs on Indian goods over Russian oil purchases, even as New Delhi seeks a trade deal with Washington.

A bipartisan U.S. bill proposing tariffs of up to 500% on countries buying Russian oil has won Trump's backing and awaits congressional approval.

The U.S. has already imposed tariffs of up to 50% on Indian goods, with half of those penalties tied to New Delhi's Russian crude imports. India is the world's second-largest buyer of Russian crude, after China.

The tariff uncertainty has intensified exodus of foreign funds. Foreign portfolio investors have offloaded shares worth $694 million so far in January after record outflows in 2025.

"Trump's tariff threat has triggered a kneejerk reaction, hurting near-term global market sentiment," said Viram Shah, founder and CEO at Vested Finance.

Other Asian markets .MIAPJ0000PUS fell 0.7%, rattled by Trump's latest tariff threat. MKTS/GLOB

A favourable India–U.S. trade deal, earnings stability and the Union budget could drive a rebound in domestic equities, Shah said.

Metal shares .NIFTYMET declined 3.3%, as the global metals rally lost steam. The sectoral sub-index had hit a record high on Tuesday. MET/L

Oil and gas stocks .NIFOILGAS fell 2.8%, as investors assessed Trump's deal to import up to $2 billion worth of Venezuelan crude, a move that would increase supply to the world's largest oil consumer. O/R

The IT index .NIFTYIT fell 2% after gaining 2.4% in the last two sessions.