Indian equity markets slipped on Wednesday as geopolitical tensions and renewed concerns over U.S. tariffs dampened investor optimism, despite strong corporate earnings updates.

The Nifty 50 (.NSEI) fell 0.26% to 26,111.9, while the Sensex (.BSESN) declined 0.23% to 84,870.36 as of 9:45 a.m. IST. Both benchmarks remain slightly below record highs, with Nifty roughly 1% below its peak hit earlier this week and Sensex about 1.5% off its December 1 record.

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Geopolitical Concerns and Tariff Worries Weigh on Markets

Markets retreated for a second consecutive session amid fresh tariff threats from the U.S. linked to India’s Russian oil imports, reflecting investor caution.

Hitesh Tailor, research analyst at Choice Equity Broking, noted:
“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.”

Ten out of sixteen major sectors closed lower, while broader small-cap (.NIFSMCP100) and mid-cap (.NIFMDCP100) indices remained largely flat.

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Titan and Jewellery Stocks Outperform

Despite overall market weakness, select stocks posted notable gains:

• Titan Company (TITN.NS) rose 3.5% after reporting a 40% surge in December-quarter revenue, led by its jewellery segment.
• Senco Gold (SENC.NS) climbed 9.3% following a strong quarterly business update and reaffirmed its target of achieving over 25% growth in fiscal year 2026.

The performance of these stocks highlights the resilience of the jewellery and luxury goods sector, even amid geopolitical and economic uncertainties.

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Mixed Performance Across Other Key Stocks

Other major stocks experienced a mixed session:

• Tata Motors Passenger Vehicles (TAMO.NS) fell 2.3%, extending losses after JLR sales declined in the December quarter.
• Indian Hotels (IHTL.NS) dropped 2.5% after Morgan Stanley downgraded the stock from “overweight” to “equal-weight.”
• Reliance Industries (RELI.NS) edged up 0.8% following a 4.5% decline in the previous session, with analysts highlighting potential growth drivers, including telecom tariff hikes, Jio’s listing, and retail revival. The company confirmed no Russian oil deliveries are expected in January.

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Investor Outlook and Market Sentiment

Even as geopolitical and trade concerns weigh on Indian stock market sentiment, analysts remain cautiously optimistic about certain sectors. Strong corporate earnings, particularly in jewellery, consumer goods, and technology, may provide support to indices in the near term.

With the results season underway, market participants will closely monitor earnings trends alongside global developments, including crude oil fluctuations and U.S.-India trade relations, which are expected to influence investor behavior in the coming weeks.