Indian stock market benchmarks resumed their downward march on Tuesday, January 13, following a brief interruption to their recent losing streak. Both the Sensex and Nifty 50 declined significantly as investors engaged in profit booking amid persistent market concerns.

Market Performance Overview

The market performance on Tuesday reflected renewed selling pressure across major indices:

The 30-share Sensex crashed nearly 600 points during the trading session, while the NSE Nifty 50 fell below the 25,650 level, touching an intraday low of 25,621.

Key Market Drivers

Several factors contributed to the market decline on Tuesday. Profit booking emerged as a primary driver, with investors taking advantage of any recovery to book gains. Persisting concerns over potential US tariffs continued to weigh on market sentiment, creating uncertainty about future trade dynamics.

Foreign capital outflows remained another significant concern for market participants. The combination of these domestic and international factors created a challenging environment for equity markets.

Global Market Influence

Mixed global market cues added to the complexity of the trading environment. The varied performance across international markets provided limited directional guidance for domestic investors, contributing to the cautious approach observed in Indian markets.

The market decline on Tuesday came after the benchmarks had managed to snap their five-day losing streak in the previous session, indicating the fragile nature of any recovery attempts in the current market environment.

Indian equity markets witnessed sharp intraday volatility on Tuesday, with benchmarks experiencing significant declines despite opening on a positive note. The BSE Sensex tumbled 933 points from its day's peak, while the Nifty 50 slid more than 1%, erasing ₹2.60 lakh crore in market value as selling pressure intensified through the session.

Market Performance Overview

The trading session began with optimism as benchmarks opened modestly higher, extending Monday's tentative rebound after snapping a five-day losing streak. However, the relief rally proved short-lived as profit-taking emerged in key heavyweight stocks.

| Index Movement: | Peak | Low | Decline || | ---: | :--- | :--- | :--- | | Sensex: | 84,258.03 | 83,324.84 | 933 points | | Nifty 50: | 25,899.80 | 25,627.40 | 272 points |

By 1:13 PM, the Sensex was trading 445 points lower at 83,433, representing a 0.53% decline, while the Nifty fell 134 points to 25,656, down 0.52% for the day.

Market Capitalization Impact

The broad-based selling resulted in significant wealth erosion, with the market capitalization of all BSE-listed companies dropping to ₹466.41 lakh crore. The sharp intraday reversal highlighted the fragile sentiment prevailing in the markets despite initial optimism.

Key Factors Behind the Decline

Profit-Taking in Heavyweight Stocks

Selling pressure returned to index heavyweights, with Reliance Industries leading the decline. The oil-to-telecom conglomerate slipped 2% after gaining 0.5% in the previous session. The stock had already lost 7.40% the previous week following the company's statement that it does not expect any Russian crude oil deliveries, keeping investors cautious.

IT Sector Weakness

The information technology pack weighed on overall sentiment, with the sectoral index falling 0.40%. Despite initial optimism around steady early earnings from IT heavyweights, profit-taking emerged as the session progressed.

HCL Technologies dropped 2% despite posting a third-quarter revenue beat. The company narrowed its FY26 growth guidance to 4.00%-4.50% from the earlier range of 3.00%-5.00%. CLSA noted that the revised outlook indicated "a fourth-quarter sequential decline on product business seasonality," prompting investors to lock in gains after the recent rebound.

Market Sentiment

The day's trading pattern reflected the ongoing uncertainty in markets, with initial optimism around U.S. trade developments and steady IT earnings quickly giving way to profit-taking. The sharp intraday reversal from gains to significant losses underscored the volatile nature of current market conditions and investor sentiment.