Stock market outlook, Jan. 8 -- The Indian stock market experienced a highly volatile 2025, driven by relatively high valuations, delays in the India-US trade deal, and significant FPI outflows. The Nifty 50 rose a modest 10.5% during the year but recorded its largest underperformance against Asian peers in nearly three decades.

2026 has started on a turbulent note for the indices. On a year-to-date (YTD) basis, the benchmark Nifty 50 index has lost more than 1%, and the BSE Sensex has dropped 1.18%. In trade today (8 January), India's benchmark shares logged their steepest one‑day fall in over four months, amid uncertainty over US tariffs.

Analysts at Shriram Wealth, in their recent outlook report for the year 2026, cautioned abo...