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Sensex Nifty Today: BEAR takes over the market, these 5 big factors dominate
Among the 30-share Sensex, ICICI Bank, Reliance Industries, Mahindra & Mahindra, Bharti Airtel and Sun Pharma were among the biggest losers, falling between 1 per cent and 3 per cent.
RIL, ICICI Bank in trouble despite results
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Shares of veteran businessman Mukesh Ambani’s company Reliance Industries fell 2.6 percent. Whereas the company had said in the third quarter report that Reliance Industries has registered a profit of Rs 18,645 crore with a marginal increase of only 0.56 percent in consolidated net profit on an annual basis.
Shares of ICICI Bank fell nearly 3 per cent after India’s second-largest private sector lender reported a bigger-than-expected decline in December quarter earnings. The bank said that the consolidated net profit of ICICI Bank in the third quarter of the financial year 2026 was 4.02 percent less as compared to the previous year.
Major reasons for market decline
The broader market indices remained mostly flat, with mid-cap and small-cap stocks showing no significant changes. So what are the factors responsible for the big fall in today’s market, we are telling here-
1- FII withdrew Rs 4346 from the market in one day
In terms of institutional investors, foreign institutional investors (FIIs) sold equities worth over Rs 4,346 crore on January 16. At the same time, Domestic Institutional Investors (DIIs) made a net purchase of Rs 3,935 crore.
2- Market shaken by Trump tariffs
Indian markets, including Asian ones, were shaken by US President Donald Trump’s threat to impose new tariffs on several European countries. Investors have seen the fear of trade war increasing again, due to which they started migrating to safer places. Trump said the US would impose an additional 10% tariff on imports from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and the UK starting February 1, rising to 25% by June 1 in the absence of a deal on US access to Greenland. European officials condemned the threat, and France raised the possibility of unprecedented retaliation.
3- Global market also booming
President Trump’s threat to impose new tariffs on many European countries has also affected the global market. U.S. stock-index futures fell in light holiday trading, with S&P 500 futures down 0.8 percent and Nasdaq futures down 1.1 percent. In Europe, Euro Stoxx 50 and DAX futures fell 1.3 percent, while FTSE futures fell 0.6 percent. Japan’s Nikkei fell 1.4 percent, and MSCI’s Asia-Pacific index excluding Japan shed 0.3 percent.
Gold rose 1.7 percent to $4,673 an ounce, while silver rose 3 percent to $94. Chinese shares outperformed, with blue chips up 0.4 percent after data showed fourth-quarter growth slowed to 4.5 percent but beat expectations.
4- Effect on crude oil
Oil prices were little changed on Monday after gains in the previous session, as Iran’s tough crackdown on protests eased concerns that the unrest could trigger a US military response and disrupt supplies from the major producer.
Brent crude rose 5 cents to $64.18 a barrel in early Asian trading. U.S. West Texas Intermediate for February rose 8 cents to $59.52 a barrel ahead of contract expiration on Tuesday, while the more actively traded March contract gained 2 cents to $59.36.
5- Rupee vs Dollar
The Indian rupee strengthened by 6 paise to 90.72 against the US dollar in early trade on Monday. The fall in the dollar amid the Greenland dispute brought some relief to the currencies of emerging markets. The dollar weakened against major currencies and most Asian currencies, sending the dollar index down to 99.20.
(Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.)
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