New Delhi [India], January 8 (ANI): The domestic equity benchmarks opened lower on Thursday as negative sentiment weighed on markets amid fresh threats of 500 per cent tariffs from the United States, continued foreign portfolio investor (FPI) outflows and rising geopolitical tensions.

The Nifty 50 index opened at 26,106.50, down 34.25 points or 0.13 per cent, while the BSE Sensex started the session at 84,778.02, declining 183.12 points or 0.22 per cent.

Market experts noted that pressure was visible across Asian markets after a recent US bill gave leverage against India, China and Brazil to stop them from purchasing Russian oil and punish countries involved in such trade.

Ajay Bagga, Banking and Market Expert, told ANI, 'Indian markets will be in a negative mode on the back of the threatened 500 per cent US sanctions. FPI sales continue and rumours of a status quo budget are not conducive to a Pre-Budget rally so far. There is a big negative print on markets this Asian morning. US seized a Russian flagged oil tanker on the high seas. This has raised geopolitical tensions. Trump berated defence companies for their performance and said that he may not allow them to distribute dividends or announce share buybacks. This saw a sharp fall in US defence companies.'

The pressure follows comments by American Senator Lindsey Graham, who on Wednesday said that US President Donald Trump has given a green light to the bipartisan Russia Sanctions Bill. The bill is aimed at giving leverage against India, China and Brazil to stop them from purchasing Russian oil and punish countries 'fuelling Putin's war machine'.

According to the official website of the US Congress, the bill titled 'Sanctioning of Russia Act 2025' seeks to impose several provisions, including penalties on individuals and entities and an increase in the rate of duty on all goods and services imported from Russia into the United States to at least 500 per cent relative to their value.

In the broader market on the NSE, barring the Nifty Smallcap index, all other indices opened in the red. The Nifty 100 was down 0.19 per cent, while the Nifty Midcap 100 slipped 0.10 per cent in early trade.

Sectorally, all NSE indices opened lower, with heavy selling pressure seen in Nifty Metal, which declined 0.67 per cent. Nifty Pharma fell 0.55 per cent, Nifty PSU Bank dropped 0.23 per cent, Nifty Auto slipped 0.47 per cent and Nifty IT was down 0.07 per cent.

Ponmudi R, CEO of Enrich Money, said, 'With both the Nifty and Bank Nifty holding key support levels but encountering stiff overhead resistance, market sentiment remains cautious amid elevated geopolitical tensions, renewed tariff-related concerns, and continued foreign portfolio outflows. Against this backdrop, the broader market is likely to open flat to range-bound, tracking mixed cues from global markets. Near-term direction will hinge on early follow-through above key resistance levels'.

Meanwhile, gold and silver prices saw a fall after two major commodity indices were rebalanced between January 8 and 14. Brokerages are forecasting selling of USD 7 billion each in gold and silver over the next five working days.

Other Asian markets also remained weak, with the Trump effect continuing to weigh heavily on investor sentiment. (ANI)