Last Updated on January 20, 2026 10:26 pm by BIZNAMA NEWS
AMN / BIZ DESK
Benchmark indices witnessed their sharpest single-day decline in over eight months on Tuesday, rattled by renewed US tariff threats and disappointing corporate earnings.
- Nifty50 plunged 353 points (1.38%) to close at 25,232.50, its lowest since October 14, 2025.
- Sensex tumbled 1,065.71 points (1.28%) to settle at 82,180.47.
The selloff intensified after Washington issued a “Greenland Tariff” ultimatum, threatening 10–25% levies on European nations, sparking fears of a global trade war.
“The market is besieged by a perfect storm of geopolitical tension and domestic weakness,” said Santosh Meena of Swastika Investmart. “A weakening Rupee has further forced investors to dump emerging market assets in favor of safe havens like Gold and US Treasuries.”
Nandish Shah of HDFC Securities noted that the Nifty has now corrected over 4% in just 10 trading sessions, marking its steepest fall since April 2025.
Stock Highlights
- Gainers: Dr Reddy’s Laboratories, HDFC Bank, Tata Consumer Products.
- Losers: Adani Enterprises, Bajaj Finance, Jio Financial Services (down 3.7–4%).
Sectoral Breakdown
| Sector/Index | Decline (%) | Notes |
|---|---|---|
| Realty | -5.0 | Worst hit, sharp correction across developers |
| Auto | -2.0 | Weak demand outlook, profit-taking |
| IT | -2.5 | Earnings disappointment, weak guidance |
| Media | -2.0 | Advertising slowdown |
| Metals | -2.0 | Global tariff fears weigh on demand |
| PSU Banks | -1.8 | Weak credit growth |
| Pharma | -1.7 | Select resilience but overall pressure |
| Oil & Gas | -1.6 | Crude volatility adds stress |
| Consumer Durables | -1.5 | Demand moderation |
| Nifty Next 50 | -2.3 | Broad-based weakness |
| Financial Services | -1.16 | Dragged by NBFCs |
| Bank Nifty | -0.81 | Mildest decline among major indices |
Broader Market
- Nifty Midcap 100: -2.62% (3-month low)
- Nifty Smallcap 100: -2.85% (8-month low)
- Market Breadth: 3,590 stocks declined vs 707 advances; 713 stocks hit 52-week lows.
TrustLine Holdings’ CEO N ArunaGiri warned:
“Small caps are down over 11.5% since November. Many stocks have lost 40–50%. This is not a buy-on-dips market but one that rewards selective, bottom-up approaches.”
Currency Watch
- Rupee: Extended losses, down 6 paise to close at ₹90.97/$.
Outlook
Analysts expect volatility to persist until clarity emerges on the US-Europe tariff standoff. Any recovery, they say, will hinge on resilience in banking and IT sectors.
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