Domestic indices have been under pressure since the US military raid in Venezuela, which resulted in Maduro’s capture. The 30-share Sensex has now slumped around 800 points since the beginning of the decline triggered by the geopolitical event. Analysts say rising uncertainty in global markets, combined with concerns about potential disruptions in oil supplies and broader risk aversion, has dampened risk appetite among investors.
Heavy selling was seen in several major stocks. On the Nifty index, Cipla led the losers with a drop of 4.28%, followed by Maruti (-2.81%) and PowerGrid (-1.60%). In contrast, certain stocks bucked the broader downtrend, with Titan rising nearly 4% and HCL Technologies gaining over 2%. Wipro, Tech Mahindra and Jio Financial Services also closed in positive territory.
Market movements in Asia showed mixed cues. Korea’s KOSPI traded higher by more than 1%, while Japan’s Nikkei and Hong Kong’s Hang Seng both moved lower. China’s Shanghai Composite edged up marginally. US markets on Tuesday closed with divergent trends — the Dow Jones Industrial Average climbed nearly 1%, while the Nasdaq dipped and the S&P 500 registered modest gains.
Institutional activity in India reflected cautious positioning. On January 6, domestic institutional investors (DIIs) were net buyers, purchasing shares worth ₹1,528 crore, while foreign institutional investors (FIIs) bought ₹142 crore. However, FIIs had been net sellers in December 2025, offloading shares worth over ₹34,000 crore even as DIIs supported markets with substantial purchases.
Market experts said the capture of Maduro and subsequent developments have injected fresh uncertainty into the global geopolitical landscape, prompting investors to reassess risk exposure. Independent strategists note that geopolitical events can affect commodities such as oil and precious metals, further influencing sentiment in equity markets.
In addition to external pressures, investors are also monitoring other macroeconomic factors, including central bank policies and the outlook for corporate earnings as India enters a new calendar year.
The markets had already fallen sharply the previous day, with the Sensex losing 376 points on Tuesday. Analysts now expect volatility to persist in the near term as global events continue to shape risk perceptions among investors.
