Post Session: Quick Review

Indian equity benchmarks ended with significant losses on Tuesday, amid broader-based selling across sectors. Markets made a flat-to-negative start due to rising geopolitical tensions and persistent foreign capital outflows. During the afternoon session, heavy selling pressure dragged markets to settle near day’s low points.

Some of the important factors in trade:

Continues fund outflow by FIIs: Sentiments remained downbeat as Foreign Institutional Investors (FIIs) maintained their selling pressure in Indian equities on January 19, recording net outflows of Rs 3,263 crore.

Piyush Goyal discusses bilateral trade issues with US leaders: Traders took note of Commerce and Industry Minister Piyush Goyal has met the US Ambassador to India, Sergio Gor, and American Senator Steve Daines and discussed bilateral issues.

IMF revises India’s GDP growth upward to 7.3% for FY26: Traders overlooked report that the International Monetary Fund (IMF) raised India's growth projection to 7.3 per cent for fiscal 2025-26, up 0.7 percentage point from its October forecast, on the back of better-than-expected performance of the economy.    

Global front: European markets were trading in red after U.S. President Donald Trump's tariff threats regarding Greenland reignited concerns about a trade war with the EU and NATO allies.  Asian equity markets were trading mostly in red, as the People's Bank of China left its benchmark loan prime rate unchanged as expected, despite signs of cooling growth and a prolonged debt crisis in the real estate sector. 

The BSE Sensex ended at 82180.47, down by 1065.71 points or 1.28% after trading in a range of 82010.58 and 83254.28. There was 1 stock advancing against 29 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 2.52%, while Small cap index down by 2.74%. (Provisional) 

The top losing sectoral indices on the BSE were Realty down by 5.21%, Capital Goods down by 2.76%, Consumer Disc down by 2.73%, Consumer Durables down by 2.71%, and Industrials down by 2.56%, while there were no gaining sectoral indices on the BSE. (Provisional)

The only gainer on the Sensex was HDFC Bank up by 0.38%. On the flip side, Eternal down by 4.02%, Bajaj Finance down by 3.88%, Sun Pharma down by 3.68%, Interglobe Aviation down by 3.04% and Trent down by 2.89% were the top losers. (Provisional)

Meanwhile, India and the United Arab Emirates (UAE) have unveiled plans for a strategic defence partnership and finalized an LNG pact, as Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan set a target of $200 billion in annual trade by 2032 while outlining a broad agenda to strengthen bilateral ties. In 2024-25, the volume of two-way trade between the two sides was $100 billion. 

Within the framework of their defence partnership, India and the UAE are eyeing defence industrial collaboration and cooperation in advanced technologies, cyberspace training, special operations, interoperability of their militaries and counter terrorism. Another deal was finalized in which Abu Dhabi National Oil Company Gas will supply 0.5 million metric tonnes of LNG annually to Hindustan Petroleum Corporation over a ten-year span starting from 2028.

The UAE is India's second-largest supplier of LNG to India after Qatar. Further, both sides also decided to explore collaboration in advanced nuclear technologies, including the development of large nuclear reactors and small modular reactors, along with cooperation in advanced reactor systems, nuclear power plant operations and maintenance and nuclear safety.

The CNX Nifty ended at 25232.50, down by 353.00 points or 1.38% after trading in a range of 25171.35 and 25585.00. There were 2 stocks advancing against 48 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Consumer Products up by 0.41% and HDFC Bank up by 0.36%. On the flip side, Eternal down by 4.18%, Bajaj Finance down by 3.74%, Adani Enterprises down by 3.72%, Sun Pharma down by 3.68% and JIO Financial Services down by 3.68% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 123.05 points or 1.21% to 10,072.30, France’s CAC fell 94.72 points or 1.17% to 8,017.30 and Germany’s DAX lost 276.06 points or 1.11% to 24,683.00.

Asian markets ended mostly lower on Tuesday due to lack of direct cues from Wall Street overnight because the US markets were closed on Monday in observance of the Martin Luther King Jr. Day holiday. Japan’s Nikkei fell sharply on growing fiscal concerns and US President Donald Trump's renewed tariff threats against European allies over Greenland. South Korea's Kospi dropped as investors took profits in major chipmakers and automakers stocks. Chinese shares declined marginally after the People’s Bank of China (PBOC), Chinese central bank, announced to leave its Loan Prime Rates unchanged on Tuesday. The one-year and five-year LPRs were at 3.00% and 3.50%, respectively. Market sentiments weakened further as Chinese regulators cracked down on speculation and trading malpractice.