Indian equity markets witnessed a sharp decline on Wednesday, extending their selloff for a third consecutive session as multiple headwinds converged to dampen investor sentiment. The BSE Sensex tumbled over 750 points to reach the day's low of 81,434, while the NSE Nifty 50 slumped over 200 points to slip below the crucial 25,050 mark. The broad-based decline erased approximately ₹3 lakh crore in investor wealth, reducing the total market capitalization of all BSE-listed companies to ₹452.74 lakh crore.

Global Tensions Drive Risk Aversion

Asian markets extended losses for a third session amid escalating tensions over US President Donald Trump's threats to acquire Greenland and revive a trade war with the European Union. Trump doubled down on his stance, stating there was "no going back" on his goal to control Greenland and refusing to rule out the use of force. His renewed tariff threats against Europe have raised fears of a fresh global trade war, with the European Union set to hold an emergency summit in Brussels on Thursday.

The global rout pushed investors toward safe havens, with gold and silver hitting record highs as Wall Street slumped more than 2% overnight and the US dollar logged its biggest fall in over a month.

Disappointing Corporate Earnings Weigh on Sentiment

A choppy earnings season offered little relief to investors, with misses from heavyweight companies such as Reliance Industries and ICICI Bank weighing on market sentiment. The IT index led sectoral losses with a 1% decline, while Persistent Systems slid 3.50% despite reporting higher quarterly profit, as multiple brokerages flagged limited upside and cited rich valuations.

The combination of earnings disappointments and cautious outlooks has made investors increasingly selective, reinforcing concerns that lofty valuations may be running ahead of fundamentals and amplifying the broader market pullback.

Rupee Hits Record Low

The Indian rupee added another layer of discomfort for equity investors by sliding to an all-time low on Wednesday. The currency weakened past its previous record low of 91.07 per US dollar set in mid-December and was last trading around 91.29, pressured by fears stemming from the Greenland dispute, sustained capital outflows, and the absence of a US-India trade agreement.

The Reserve Bank of India has maintained its recent approach of intervening intermittently to smooth volatility rather than defending any specific level, allowing the currency to adjust to broader global and domestic pressures.

Foreign Institutional Investors Continue Selling Spree

Relentless selling by foreign institutional investors continued to sap market confidence, with FIIs extending their net selling streak to an eleventh straight session. On Tuesday, January 20, overseas investors sold equities worth nearly ₹2,938 crore, reflecting their caution amid intensifying global trade tensions and geopolitical uncertainty.

While domestic institutional investors provided some counterbalance with net purchases worth about ₹3,666 crore on the same day, it was not enough to arrest the slide in benchmark indices as foreign outflows remained the dominant force driving price action.

Multiple stocks are drawing investor attention today due to a combination of regulatory approvals, quarterly earnings announcements, and significant corporate developments across various sectors.

Regulatory Approvals and Leadership Changes

HDFC Bank received a significant regulatory milestone as the Reserve Bank of India (RBI) approved the reappointment of Kaizad Bharucha as Whole-time Director (Deputy Managing Director) for a three-year term, effective April 19, 2026.

The Competition Commission of India (CCI) granted approval for two major acquisition deals. Tata Steel received clearance for acquiring 50.01% equity share capital of Thriveni Pellets, while RBL Bank's proposed acquisition of certain shareholding by Emirates NBD Bank (P.J.S.C.) also received regulatory approval.

Quarterly Financial Results

Several companies reported their Q3 financial performance with notable results:

AU Small Finance Bank demonstrated strong asset quality improvement with gross NPA declining to 2.30% from 2.41% quarter-on-quarter, while net NPA remained stable at 0.88%. Persistent Systems achieved dollar revenue growth of 17.3% to $422.50 million, though EBIT margin compressed slightly to 14.4% from 14.9% year-on-year.

Corporate Developments and Partnerships

HCL Technologies announced a strategic partnership with Carahsoft Technology Corp to accelerate digital transformation initiatives in the US public sector.

Power Grid Corporation of India's board approved procurement proposals worth ₹914.00 crore for cold spare transformers and reactors, indicating significant infrastructure investment.

Major Business Expansions

JSW Energy's subsidiary, JSW Thermal Energy Two Limited, signed a Power Purchase Agreement (PPA) with West Bengal State Electricity Distribution Company for a greenfield 1,600 MW super/ultra-supercritical thermal power plant.

Embassy Developments announced its expansion into the Mumbai Metropolitan Region (MMR) with plans to invest ₹4,500.00 crore across three residential projects in Worli, Juhu, and Alibaug.

Additional Corporate Actions

United Spirits' board approved additional investment in Sober by subscribing to 1,762 CCPS for ₹3.20 crore, increasing its stake to 25% from 15%. Highway Infrastructure received a Letter of Award (LoA) from the National Highways Authority of India (NHAI) for user-fee agency engagement at Mundka Fee Plaza on the Urban Extension Road-11 corridor connecting Delhi and Haryana.

Today's trading session will also see Q3 results announcements from major companies including Dr Reddy's Laboratories, Eternal, HPCL, Bajaj Consumer Care, Bank of India, and several others across different sectors.