Indices continue to witness weakness; Rupee hits record low

Domestic equity indices added more losses in late morning deals as market participants indulged in reducing their positions amid weak cues from the global markets. Meanwhile, the broader markets were facing the heat of selling; the BSE mid-cap index declined by 1.62 per cent and the small-cap index was down 1.64 per cent. Depreciation in Indian rupee against dollar weighed down sentiments. The rupee depreciated 53 paise to an all-time low of 91.50 against the US dollar, dragged down by persistent dollar demand and cautious global sentiment. Meanwhile, India's volatility gauge -- India VIX surged nearly 10 per cent to trade at 14.06, indicating increased market uncertainty and investor nervousness. Besides, geopolitical tensions also continued to weigh on markets’ sentiments.

On the global front, Asian markets were trading mostly in red following the negative cues from US markets overnight. Back home, all the sectoral indices were trading in red led by Industrials, Consumer Durables, Bankex, Capital Goods and IT.

The BSE Sensex is currently trading at 81518.14, down by 662.33 points or 0.81% after trading in a range of 81124.45 and 82282.25. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.62%, while Small cap index down by 1.64%.

The top losing sectoral indices on the BSE were Industrials down by 1.62%, Consumer Durables down by 1.52%, Bankex down by 1.42%, Capital Goods down by 1.38% and IT down by 1.19%, while there were no gainers on sectoral indices.

The top gainers on the Sensex were Eternal up by 1.56%, Hindustan Unilever up by 0.73%, Ultratech Cement up by 0.64%, Sun Pharma up by 0.43% and Power Grid up by 0.37%. On the flip side, Trent down by 2.89%, Bharat Electronics down by 2.53%, ICICI Bank down by 2.19%, Larsen & Toubro down by 1.93% and Axis Bank down by 1.82% were the top losers.

Meanwhile, European Commission President Ursula von der Leyen has said that European Union (EU) is on the verge of sealing a historic trade agreement with India that is being called 'the mother of all deals'. Leyen asserted it will create a market for 2 billion people or about one-fourth of the global GDP.

She said the real would crucially provide a first-mover advantage for Europe with one of the world's fastest-growing and most dynamic continents. She stated ‘From Latin America to the Indo-Pacific and far beyond, Europe will always choose the world. And the world is ready to choose Europe.’

President of the European Council, Antonio Costa and Leyen will be in India from January 25 to 27 to grace the Republic Day celebrations as chief guests and hold summit talks with Prime Minister Narendra Modi. The two sides are set to announce the conclusion of negotiations on the much-awaited Free Trade Agreement at the India-EU summit on January 27, 2026.

The European Union is India’s largest trade partner, with bilateral trade in goods reaching $135 billion in the 2023-24 financial year. The free trade agreement is expected to significantly enhance trade ties. India and the European Union have been strategic partners since 2004.

The CNX Nifty is currently trading at 25059.00, down by 173.50 points or 0.69% after trading in a range of 24919.80 and 25277.75. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Eternal up by 1.85%, Tata MotorsPassenger up by 0.86%, JSW Steel up by 0.82%, Hindalco up by 0.69% and Hindustan Unilever up by 0.61%. On the flip side, Trent down by 2.72%, Bharat Electronics down by 2.43%, ICICI Bank down by 2.26%, Larsen & Toubro down by 1.87% and Axis Bank down by 1.76% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 204.1 points or 0.39% to 52,787.00, Taiwan Weighted lost 458.29 points or 1.46% to 31,301.70, Jakarta Composite plunged 113.21 points or 1.25% to 9,021.49 and Straits Times fell 16.84 points or 0.35% to 4,811.16. However, Shanghai Composite strengthened 15.81 points or 0.38% to 4,129.46, KOSPI increased 24.00 points or 0.49% to 4,909.75 and Hang Seng advanced 30.49 points or 0.12% to 26,518.00.