Indian Markets Decline Sharply as Global Selloff Weighs on Investor Sentiment
Indian stock markets declined sharply on Tuesday with Sensex falling 1,065.71 points to 82,180.47 and Nifty dropping 353 points to 25,232.50. The selloff was driven by global trade concerns, mixed earnings, and foreign institutional selling. US markets posted their worst performance since October, while Asian markets continued declining. Despite global pessimism, Gift Nifty indicates potential mild recovery for Indian markets.
*this image is generated using AI for illustrative purposes only.
Indian stock markets faced intense selling pressure on Tuesday, with benchmark indices posting significant declines amid a broader global market selloff. The downturn was attributed to renewed trade war concerns, mixed corporate earnings results, and sustained foreign institutional selling that dampened investor confidence across sectors.
Market Performance Overview
The domestic equity markets witnessed sharp declines, reflecting the global risk-off sentiment that dominated trading sessions worldwide.
| Index | Closing Level | Daily Change (Points) | Daily Change (%) |
|---|---|---|---|
| Sensex | 82,180.47 | -1,065.71 | -1.28% |
| Nifty 50 | 25,232.50 | -353.00 | -1.38% |
According to Ajit Mishra, SVP Research at Religare Broking Ltd, market sentiment remained subdued due to mixed corporate earnings and renewed concerns surrounding geopolitical tensions and global trade developments. Persistent foreign institutional selling, along with a weaker currency environment, further weighed on investor confidence and kept risk appetite restrained throughout the session.
Global Market Impact
US markets experienced their worst single-day performance since October 10, with all major indices posting substantial declines following President Donald Trump's tariff threats against European countries over the Greenland issue.
| US Index | Closing Level | Daily Change (Points) | Daily Change (%) |
|---|---|---|---|
| Dow Jones | 48,488.59 | -870.74 | -1.76% |
| S&P 500 | 6,796.86 | -143.15 | -2.06% |
| Nasdaq | 22,954.32 | -561.07 | -2.39% |
Major technology stocks bore the brunt of the selloff, with Nvidia declining 4.38%, Apple falling 3.46%, Amazon dropping 3.40%, Tesla plunging 4.17%, and Microsoft declining 1.16%.
Asian Markets and Gift Nifty Signals
Asian markets continued the downward trajectory on Wednesday, reflecting concerns over the global trade environment. Japan's Nikkei 225 declined 1.28%, while the Topix fell 1.09%. South Korea's Kospi dropped 1.09% and the Kosdaq fell 2.20%. Hong Kong's Hang Seng index futures indicated a lower opening.
However, Gift Nifty was trading around the 25,297 level, showing a premium of nearly 38 points from the Nifty futures' previous close, indicating a potentially mild positive start for Indian stock market indices.
Commodity and Currency Movements
Safe-haven assets gained momentum as investors sought refuge from equity market volatility. Gold prices rose 0.80% to reach a new record high of $4,806.00 per ounce, while silver climbed 0.40% to $95.01, approaching its record high of $95.87.
The dollar languished near three-week lows against the euro and Swiss franc following the White House threats over Greenland. The dollar index remained flat at 98.54 after falling 0.53% overnight, while the yen held steady at 158.19 per dollar.
Crude oil prices traded lower, with Brent crude falling 1.31% to $64.07 per barrel and US West Texas Intermediate crude futures declining 1.21% to $59.65.
Trade Relations Development
Amid the market turbulence, India and the European Union are reportedly close to finalizing a Free Trade Agreement, described by some as "the mother of all deals." European Commission President Ursula von der Leyen indicated that India and the EU are set to announce the conclusion of negotiations on January 27, 2026, at the India-EU summit.
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