Stock markets fall for second day as selling in Reliance Industries, HDFC Bank dents sentiment

Market Performance - Benchmark indices Sensex and Nifty ended lower for the second consecutive day, with Sensex dropping 376.28 points (0.445%) to settle at 85,063.34 and Nifty declining 71.60 points (0.275%) to end at 26,178.70 [1][2] - Heavy selling was observed in blue-chip stocks such as Reliance Industries, which fell 4.42%, and HDFC Bank, contributing to the overall market decline [1][2] Sector Performance - The services sector growth in India moderated in December, with the HSBC India Services PMI Business Activity Index falling from 59.8 in November to 58.0 in December, indicating the slowest rate of expansion since January [4][5] - Despite the slowdown, firms remained optimistic about growth prospects, although overall sentiment reached its lowest level in nearly three-and-a-half years [5] Institutional Activity - Foreign institutional investors sold equities worth ₹36.25 crore on January 5, 2026, while domestic institutional investors purchased stocks worth ₹1,764.07 crore [3] Global Context - U.S. President Donald Trump indicated potential tariff increases on India due to dissatisfaction with India's purchases of Russian oil, which may impact market sentiment [3][4] - In contrast, Asian markets showed positive performance, with indices such as South Korea's Kospi and Japan's Nikkei 225 ending significantly higher [6]