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Indian equity benchmarks ended marginally lower, as profit booking near record highs and selling pressure in select heavyweight stocks offset gains in technology, pharmaceuticals and broader markets.

The BSE Sensex slipped 102.20 points, or 0.12 per cent, to close at 84,961.14. The Nifty 50 declined 0.14 per cent to settle at 26,140.75, remaining just short of its record levels.

Market breadth on the NSE was mixed on January 7, 2026. Out of 3,246 stocks traded, 1,578 shares advanced, while 1,551 declined and 117 remained unchanged. As many as 96 stocks touched their 52-week highs, while 103 stocks hit 52-week lows.

Around 70 stocks were locked in the upper circuit, whereas 55 stocks were in the lower circuit. The total market capitalisation of NSE-listed companies stood at Rs 477.81 lakh crore at the close.

Markets opened lower amid geopolitical tensions and tariff-related concerns, which capped optimism around the earnings outlook. However, trading through the session showed selective strength, indicating sector rotation rather than broad-based weakness.

Technology stocks led the gains. Titan rose 3.96 per cent, HCL Technologies climbed 2.17 per cent, Tech Mahindra gained 1.80 per cent, Infosys advanced 1.75 per cent, and TCS added 1.23 per cent. This pushed the Nifty IT index up 1.87 per cent. Pharma and consumption-led stocks also attracted buying interest, supporting the broader market.

On the downside, pressure in large-cap stocks weighed on the benchmarks. Maruti fell 2.78 per cent, HDFC Bank declined 1.21 per cent, SBI slipped 1.12 per cent, and Bharti Airtel eased 1.00 per cent. Bank Nifty ended 0.21 per cent lower, while auto, oil and gas, and rate-sensitive sectors also closed in the red. Realty stocks underperformed during the session.

Broader markets outperformed the frontline indices. Midcap and smallcap indices ended higher, reflecting continued interest in select stocks backed by sector-specific and quarterly developments. The Nifty Midcap and Smallcap indices posted gains, indicating relatively stronger participation outside the large-cap space.

Market expert Anil Singhvi said the decline was driven by a combination of profit booking and fund flow trends. He said foreign institutional investors have been mildly negative over the past two days, while domestic institutional investors have also slowed the pace of buying.

Singhvi said markets are close to lifetime highs, which has triggered profit booking. He added that large banks, including HDFC Bank, are witnessing profit taking, while the auto sector has also seen selling pressure after recent gains. According to him, whenever the Nifty and Bank Nifty approach record levels, investors tend to book profits, leading to short-term consolidation.

He said selling by FIIs has been visible across cash and derivatives, with net selling estimated at around Rs 11,000–12,000 crore over the past two days. At the same time, domestic funds have not been buying as aggressively as before, adding to near-term pressure.

So far this month, FIIs have sold shares worth Rs 3,122.7 crore in the cash segment, while domestic institutional investors have bought equities worth Rs 5,716.7 crore. The divergence in flows suggests domestic support remains intact, though near-term market direction will depend on whether selling pressure eases near key support levels.

Singhvi said the overall market trend remains positive but is not a one-way rally. He said the current phase reflects consolidation with sector rotation, where gains in IT, pharma and consumption are being offset by weakness in banking and select heavyweights.

Anubhav Maurya is a business journalist and Senior Sub Editor at Zee Business, where he covers the stock market, economy, industry trends, mutual funds, and personal financ