Indian stock markets experienced a significant decline on Tuesday as President Donald Trump’s recent threats of trade tariffs on BRICS nations and a focus on reducing reliance on the US dollar sent negative signals to investors.
The BSE Sensex plunged by 1,235 points, or 1.6%, closing at 75,838, while the Nifty 50 dropped 320.1 points, or 1.37%, settling at 23,024. This resulted in a loss of over Rs 7 lakh crore in market value for investors.
Only UltraTech Cement and HCLTech saw gains on the Sensex, while Zomato experienced a sharp 11% decline. Other major losers included ICICI Bank and Mahindra & Mahindra. On the Nifty 50, Apollo Hospitals gained 2.76%, but overall, most stocks recorded losses, with Trent falling by 4.5%.
Market experts noted that large-cap stocks like Zomato and Reliance Industries significantly impacted the indices. Zomato's shares plummeted after announcing a 57% drop in its quarterly profits. Investor sentiment remained weak due to lackluster Q3 earnings and continued selling by foreign institutional investors (FIIs), who had sold equities worth Rs 48,023 crore by January 20.
Sector-wise, FMCG was the only sector to record minor gains, while others like Consumer Durables, Realty, and Nifty Bank saw notable declines. Broader markets also suffered, with both the Nifty Smallcap 100 and Nifty Midcap 100 indices dropping.
Additionally, India's fear gauge, the India VIX index, surged by 5.92% to 17.39%, reflecting heightened market uncertainty.
BOX
Impact on markets due to Trump’s remarks
1. BSE Sensex: Fell by 1,235 points (1.6%), closing at 75,838.
2. Nifty 50: Dropped 320.1 points (1.37%), closing at 23,024.
3. Investor Losses: Total loss for investors exceeded Rs 7 lakh crore.
4. Stocks in Positive Territory: 2 stocks (UltraTech Cement, HCLTech).
5. FIIs: Sold equities worth Rs 48,023 crore as of January 20.
6. Rupee: Gained 0.20 paise, reaching 86.29.