Key gauges end lower amid global uncertainty

Indian equity benchmarks ended lower on Tuesday, tracking unabated foreign fund outflows and selling in blue-chip stocks amid global tariff-related concerns. Foreign institutional investors offloaded equities worth Rs 3,638.40 crore on Monday, according to exchange data. Market sentiment was also sluggish due to a weak start to the earnings season.

Some of the important factors in trade:

India, Germany agree to expand strategic ties amid global turmoil: India and Germany have unveiled new measures to strengthen cooperation in defence, trade, critical minerals and semiconductors. Prime Minister of India Narendra Modi and Chancellor Friedrich Merz vowed to bolster overall bilateral ties to jointly navigate challenges arising out of geopolitical upheaval

Net direct tax mop up registers 8.82% growth so far in FY26: The Income Tax Department has said that Net direct tax collection grew 8.82 per cent to over Rs 18.38 lakh crore between April 1, 2025 and January 11, 2026 period, as compared with Rs 16.89 lakh crore collected during the same period last year.

Growth in India's Credit-Deposit ratio indicates better financial development: The SBI Research in latest report has highlighted growth in India's Credit-Deposit (CD) ratio in past 25 years (since 2000-01 to December 2025), which signifies a better financial development and led to strong economic growth. 

Auto stocks in watch: Society of Indian Automobile Manufacturers (SIAM) has said that passenger vehicle (PV) dispatches from companies to dealers increased 27 per cent year-on-year in December 2025, as demand remained robust for utility vehicles.  

Global front: European markets were trading mostly in green as earnings optimism, tech sector strength and expectations of a favorable economic scenario boosted sentiment. Asian markets settled mostly higher as a strong rally in tech shares fueled by optimism over Artificial Intelligence continued to bolster sentiment. 

Finally, the BSE Sensex fell 250.48 points or 0.30% to 83,627.69 and the CNX Nifty was down by 57.95 points or 0.22% to 25,732.30.         

The BSE Sensex touched high and low of 84,258.03 and 83,262.79 respectively. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices ended mixed; the BSE Mid cap index fell 0.16%, while Small cap index was up by 0.46%.

The top gaining sectoral indices on the BSE were IT up by 0.55%, Metal up by 0.39%, Basic Materials up by 0.19%, PSU up by 0.16% and Oil & Gas up by 0.12%, while Telecom down by 1.18%, Industrials down by 1.09%, Capital Goods down by 0.67%, Consumer Durables down by 0.63% and Realty down by 0.56% were the top losing indices on BSE.

The top gainers on the Sensex were Eternal up by 3.24%, Tech Mahindra up by 1.74%, ICICI Bank up by 1.66%, SBI up by 1.32% and TCS up by 0.99%. On the flip side, Trent down by 3.39%, Larsen & Toubro down by 3.25%, Reliance Industries down by 2.14%, Interglobe Aviation down by 1.95% and ITC down by 1.09% were the top losers.

Meanwhile, the SBI Research in latest report has highlighted growth in India's Credit-Deposit (CD) ratio in past 25 years (since 2000-01 to December 2025), which signifies a better financial development and led to strong economic growth. The report noted that the CD ratio has been increasing since 2000-01 from 53% to 82% as of December 15, 2025. The incremental CD ratio numbers crossed 100% in a number of instances, showing the increase in demand for credit, despite lean deposits growth but banks honoured it by raising resources from other sources. Moreover, post the pandemic, the balance sheets of Indian banks have revived with bank asset growth rebounding sharply to 94% of the GDP as compared to 77% in FY21, which reflects renewed credit intermediation and financial deepening. 

Over the two decades, both deposits and advances expanded manifold, with deposits surging from Rs 18.4 lakh crore to Rs 241.5 lakh crore and advances from Rs 11.5 lakh crore to Rs 191.2 lakh crore during FY05 to FY25. Meanwhile, market share of Public Sector Banks’ (PSBs) showed continued revival after a secular decline since FY08, with PSBs gradually reclaiming market share, indicating balance sheet repair and renewed lending appetite. The report noted that CASA stability masked divergent trends across bank groups with private banks strengthening CASA shares, while foreign banks witnessed erosion. 

The report pointed that there is a gap between maturity profile of share of deposits and advances for 6 months to 1 year and 1 to 3-year time bucket and the 35% share of advances in 1-3 years bucket indicating increasing tendency of pre-payment among borrowers. Further, the unsecured advances expanded from Rs 2 lakh crore to Rs 46.9 lakh crore, with share rising to 24.5% in FY25 from 17.7% in FY05. Besides, PSBs accounted for half of the unsecured lending followed by Private Sector Banks. On the asset side, Indian banks assets size has increased from merely Rs 23.6 lakh crore in FY05 to Rs 312.2 lakh crore in FY25.

CNX Nifty touched high and low of 25,899.80 and 25,603.30 respectively. There were 18 stocks advancing against 32 stocks declining on the index.      

The top gainers on Nifty were ONGC up by 3.30%, Eternal up by 3.16%, ICICI Bank up by 1.66%, Hindalco up by 1.61% and Max Healthcare Institute up by 1.60%. On the flip side, Trent down by 3.71%, Larsen & Toubro down by 3.21%, Dr. Reddy's Lab down by 2.27%, Interglobe Aviation down by 1.99% and Reliance Industries down by 1.77% were the top losers.

European markets were trading mostly in green; UK’s FTSE 100 increased 2.95 points or 0.03% to 10,143.65 and Germany’s DAX gained 27.36 points or 0.11% to 25,432.70, while France’s CAC fell 48.56 points or 0.58% to 8,310.20.

Asian markets settled mostly higher on Tuesday after Wall Street hit another record high overnight, despite concerns about the US Justice Department's criminal investigation of Federal Reserve Chair Jerome Powell. Japan’s Nikkie Index ended at a record high on growing expectations that a potential general election next month could solidify Prime Minister Sanae Takaichi’s political standing, allowing her to take bolder steps to boost the economy. Seoul shares climbed at another record milestone after South Korean chip giant SK hynix said it would spend 19 trillion won ($12.9 billion) building an advanced chip packaging plant, as the firm rides the global AI boom. However, Chinese shares declined amid profit-taking in high-flying defense and technology shares.