Weak global cues, amid concerns of a potential trade war following US President Donald Trump’s announcement of tariffs on eight European countries, drove the domestic market into negative territory on Monday, January 19.
The Sensex fell 324 points, or 0.39%, to close at 83,246.18, while the Nifty 50 closed at 25,585.50, down 109 points, or 0.42%. The BSE Midcap index also suffered a loss of 0.43%, but the Smallcap index plunged 1.28%.
Market sell-off made investors poorer by ₹2 lakh crore in a day as the overall market capitalization of BSE-listed firms dropped to nearly ₹466 lakh crore from nearly ₹468 lakh crore in the previous session.
Indian stock market: 10 key highlights from the day
1. What drove the Sensex, Nifty 50 down today?
Trump’s tariff threat against eight European nations, effective from February 1, over Greenland, and the European Nations’ reaction, indicating retaliatory measures, raised concerns that the world was heading for a trade war that would disrupt economic growth, increase inflationary pressure, and erode corporate profitability.
“Global risk appetite weakened after US President Donald Trump announced new tariff threats against eight European nations, reigniting concerns of a potential US–EU trade dispute. This development triggered a broad risk‑off mood across global equity markets, prompting investors to rotate toward safe‑haven assets like gold,” Vinod Nair, Head of Research, Geojit Investments, noted.
“Domestically, sentiment remains cautious amid ongoing FII outflows. With the Q3 earnings season progressing, stock‑specific volatility is likely, particularly where performance has been mixed. Overall, given the blend of global uncertainty and domestic triggers, markets are expected to remain in a consolidation zone,” said Nair.
2. Top gainers in the Nifty 50 index
InterGlobe Aviation (IndiGo) (up 4.16%), Tech Mahindra (up 2.39%), and Hindustan Unilever (up 2.29%) were the top gainers in the Nifty 50 index.
3. Top losers in the Nifty 50 index
Wipro (down 8.21%), Reliance Industries (down 3.07%), and Eternal (down 2.87%) ended as the top losers in the index. As many as 31 stocks ended lower in the index.
4. Sectoral indices today
Nifty Bank closed 0.34% lower at 59,891.35, while the Financial Services index ended almost flat.
Nifty Realty, Media, and Oil & Gas indices crashed up to 2%. Nifty FMCG (up 0.67%) and Auto (up 0.13%) were the only two indices that closed with gains.
Volatility index Nifty VIX jumped 4%.
5. Most active counters in terms of volume
Bharat Coking Coal (73.8 crore shares), Vodafone Idea (56.4 crore shares), and Tata Silver Exchange Traded Fund (35.6 crore shares) were the most active counters in terms of volume on the NSE.
6. Eight stocks jump more than 15% on the BSE
Jindal Saw, Alacrity Securities, and AMD Industries were among the eight stocks that jumped more than 15% on the BSE.
7. Advance-decline ratio
The advance-decline ratio remained in favor of decliners as over 3,000 stocks declined while about 1,200 advanced on the BSE.
8. Nearly 100 stocks hit 52-week highs
Some 97 stocks, including Tech Mahindra, PNB, LTIMindtree, Federal Bank, Canara Bank, AXIS Bank, and Vedanta, hit their 52-week highs on the BSE.
9. Over 430 stocks hit 52-week lows
As many as 438 stocks, including ITC, Dixon Technologies (India), Indian Hotels Company, IRCTC, and L&T Technology Services, hit their 52-week lows on the BSE.
10. Nifty’s technical outlook
According to Shrikant Chouhan, the head of equity research at Kotak Securities, the current market texture is weak, but a fresh selloff is possible only if 25,500 is dismissed.
Below 25,500, the market could slip to 25,400-25,350. On the flip side, above 25,650, a pullback move could extend till 25,750-25,800. The intraday market texture is volatile and non-directional; hence, level-based trading would be the ideal strategy for day traders,” said Chouhan.
Ajit Mishra, SVP- Research at Religare Broking, said that the Nifty’s break below the key support zone near 25,600 signals a continuation of the near-term corrective trend, with the next support placed around the 25,300–25,400 range.
In the event of a rebound, the 25,600 level followed by the 25,800 zone is likely to act as strong resistance, Mishra said.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
