Indian shares fell on Monday after their worst weekly performance in more than three months as US tariff uncertainty and geopolitical risks continued to weigh, offsetting optimism around improving corporate earnings. The Nifty 50 slipped 0.41% to 25,578.16, while the Sensex fell 0.49% to 83,167.82 as of 9:57 a.m. IST. Market breadth was weak, with 14 of the 16 major sectors lower. Small-caps dropped 0.8% and mid-caps declined 0.5%. Analysts said the absence of an India–US trade deal, elevated geopolitical tensions and continued foreign outflows are dulling expectations for the December-quarter earnings season. Oil prices were flat after three straight sessions of gains on concerns over potential supply disruptions in Iran and Venezuela lingered. Elevated crude prices are a negative for oil-importing economies such as India. “Concerns over higher tariffs following US President Donald Trump’s remarks last week have unsettled domestic markets, triggering profit-taking and intensifying foreign outflows,” said G Chokkalingam, founder and head of research at Equinomics Research. Foreign investors sold Indian equities worth 37.69 billion rupees ($417.63 million) on Friday, provisional data showed. They have offloaded about $1.3 billion so far in January, following record outflows of nearly $19 billion in 2025. However, improvement in earnings in the December quarter could help cushion market sentiment against global headwinds, Chokkalingam said. Tejas Networks fell 8% after reporting a net loss in the December quarter compared to a profit in the year-ago period. Bucking the trend, Avenue Supermarts rose 3% after the D-mart operator posted a 17% rise in the December quarter profit. Investors await inflation data, scheduled for release later in the day, for further economic cues. India’s consumer inflation likely rose for a second straight month in December to 1.5%, driven by a broad-based pickup in food prices and fading favourable base effects, a Reuters poll showed.