Indian equity markets, represented by the Sensex and Nifty, have exhibited considerable volatility, with both benchmark indices experiencing a notable downturn over recent trading sessions. The Sensex tumbled over 600 points intraday on January 8, 2026, and the Nifty touched the 25,900 mark, extending a losing streak. This market movement is partly attributed to relentless foreign institutional investor (FII) outflows and a cautious global sentiment. The primary focus of global and Indian investors remains squarely on the US Supreme Court, which was expected to deliver a significant ruling on the legality of tariffs imposed during the Trump administration. However, the Supreme Court did not issue a decision on Friday, January 9, 2026, deferring its next round of rulings to January 14, 2026. This ongoing legal challenge questions the President's authority to levy sweeping import duties under the International Emergency Economic Powers Act (IEEPA), a 1977 law intended for national emergencies. Lower courts have previously ruled that the administration overstepped its authority, and the Supreme Court's verdict could either uphold these tariffs, redefine executive power, or potentially lead to demands for refunds of an estimated $133 billion to $150 billion in duties already paid by importers. The outcome carries substantial implications for US trade policy, global commerce, and supply chains. For India, the ruling could have indirect ripple effects, particularly benefiting exporters to the US if the tariffs are struck down. Conversely, there's added concern over new proposed US legislation, such as a 500% tariff on countries importing Russian oil, which would significantly impact India's trade competitiveness. The continuing uncertainty surrounding these tariffs contributes to the prevailing market caution.