INDIA STOCKS-Indian share benchmarks slip on US tariff, foreign outflow woes

By Bharath Rajeswaran and Vivek Kumar M

BENGALURU, Jan 14 (Reuters) - India's equity benchmarks fell on Wednesday, marking the seventh daily loss in eight sessions, as concerns over U.S. tariffs and foreign outflows overpowered a rally in metal and bank shares.

The Nifty 50 .NSEI fell 0.26% to 25,665.6 and the Sensex .BSESN shed 0.29% to 83,382.71. The indexes have lost 2.5% and 2.8%, respectively, over eight sessions. Indian markets will be closed on Thursday for a local holiday.

Nine of the 16 major sectors logged losses on the day. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 added 0.7% and 0.3%.

Uncertainty over the timeline for a trade deal between India and the U.S. has been weighing on investor sentiment. While the U.S. levies tariffs of up to 50% on Indian goods, President Donald Trump has threatened to impose an additional 25% tariffs on countries trading with Iran.

Globally, geopolitical concerns have intensified after the death toll from unrest in Iran climbed to 2,600 amid fears of a further escalation of threats of U.S. intervention.

"Geopolitical concerns have led to an increase in business uncertainty and volatility, which is never relished by markets. A sustained tariff row with the U.S. and related news flows are disturbing domestic market momentum," said Amnish Aggarwal, director of institutional research at PL Capital.

Foreign portfolio investors have net sold Indian shares worth about $2 billion in January after a record $19 billion outflow in 2025.

Metal index .NIFTYMET advanced 2.7%, as prices of base metals rose on global supply concerns and mounting geopolitical risks. MET/L

State-owned banks .NIFTYPSU jumped 2.1%, led by a 7.9% rise in Union Bank of India UNBK.NS and a 2.2% jump in Indian Overseas Bank IOBK.NS, both of which reported higher profits.

Top private lender HDFC Bank HDBK.NS and No. 1 IT firm Tata Consultancy Services <TCS.NS> lost 1.3% and 2.3%, respectively, dragging the benchmarks.

Tata Elxsi TTEX.NS dropped 5% on decline in quarterly profit.