Indian equity markets ended lower on Monday as global trade tensions resurfaced following U.S. President Trump's announcement of new tariff threats against European nations. The selling pressure was amplified by ongoing foreign institutional investor (FII) outflows and mixed domestic earnings results.

Market Performance

The benchmark indices witnessed significant intraday volatility before closing in negative territory. The BSE Sensex experienced substantial pressure during trading hours, touching an intraday low of 82,941.01 after falling as much as 629 points.

Global Trade Tensions Impact

The market decline was primarily attributed to renewed trade war concerns after Trump announced plans to impose additional 10% tariffs on goods imported from eight European nations including Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain. These tariffs are scheduled to begin February 1 and escalate to 25% by June 1 if no agreement on Greenland is reached.

Vinod Nair, Head of Research at Geojit Investments, explained that this development triggered a broad risk-off mood across global equity markets, prompting investors to rotate toward safe-haven assets like gold. Major European Union states condemned the tariff threats, with France proposing economic countermeasures in response.

European Market Response

European markets reflected similar negative sentiment, with the STOXX 600 index falling 1.2%. Blue-chip indexes across major European financial centers showed declines ranging from 0.4% to 1.7% in Frankfurt, Paris and London. U.S. markets remained closed for Martin Luther King Jr Day.

Technical Analysis and Market Outlook

Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty remained under bearish control throughout the session, sustaining below the 20 EMA. The technical indicators painted a concerning picture with persistent intraday volatility and selling pressure on every rise.

Trading Activity and Stock Performance

Market breadth remained weak with bearish sentiment dominating across sectors. Out of 4,483 stocks traded on BSE, 3,075 witnessed declines while only 1,226 saw advances, and 182 remained unchanged.

Most Active Stocks by Value:

• HDFC Bank: ₹3,543 crore
• ICICI Bank: ₹3,202 crore
• Reliance Industries: ₹2,886 crore
• Eternal: ₹2,359 crore
• Netweb Technologies: ₹2,260 crore

Stocks Under Selling Pressure: Wipro, RBL Bank, IDBI Bank, MRPL, HBL Power, Reliance Infrastructure and Jubilant Pharmova witnessed significant selling pressure.

Stocks Showing Buying Interest: Despite the overall negative sentiment, certain stocks attracted buying interest including Jindal Saw, Welspun Corp, JSW Infrastructure, CG Power and Industrial Solutions, ABB Power, InterGlobe Aviation and Polycab India.

Market Outlook

Analysts expect continued consolidation given the combination of global uncertainty and domestic triggers. With Q3 earnings season progressing and mixed performance results, stock-specific volatility is likely to persist. The ongoing FII outflows continue to weigh on domestic sentiment, while select Asian markets, particularly China, have shown relative resilience supported by favorable macro indicators and stronger-than-expected export-driven GDP growth.

Indian equity markets have been experiencing sustained downward pressure, with domestic benchmark indices showing consistent declines over recent weeks. The ongoing market volatility has affected major indices, reflecting broader challenges in the current trading environment.

Market Performance Overview

The domestic benchmark indices have faced continuous pressure for over two weeks, demonstrating the persistent nature of the current market downturn. This extended period of decline has impacted investor sentiment and market dynamics across various sectors.

Index Performance Details

The Nifty 50 has registered a decline of nearly 2% over the past month, reflecting the challenging market conditions that have persisted during this period. Similarly, the Sensex has experienced a decline of over 2% during the same timeframe, indicating that the pressure on equity markets has been broad-based across major indices.

Market Pressure Timeline

The sustained pressure on domestic benchmark indices has been evident for over two weeks, suggesting that the current market conditions represent more than just short-term volatility. This extended period of decline has characterized the recent trading environment, with both major indices showing consistent downward movement.

The current market scenario reflects the ongoing challenges faced by Indian equity markets, with both benchmark indices experiencing similar levels of decline over the measured period. The persistence of this downward pressure across major indices indicates the broad-based nature of the current market conditions.