Domestic benchmark indices have remained under a continuous session for over two weeks, with Nifty 50 declining nearly 2 per cent in a month and Sensex
crashing by over 2 per cent in the same period. On Monday, Jan 19, markets opened lower and continued to fall with Nifty 50 slipping below 25,500 at 25,494, down 0.70 per cent, while Sensex fell 0.80 per cent at an intraday low of 82,898 Markets have been trailing lower dude to multiple reasons, including trade deal uncertainty between the US and India. Continuous FII selling in the domestic market. But, the latest cause fueling this downward trend is the fresh tariff threat by US President Donald Trump to eight EU nations and the ongoing earnings season of India Inc. At market open on Monday, the Nifty 50 and the Sensex were down 0.16% and 0.09%, respectively. The indices thereafter came under pressure with NSE Nifty 50 falling nearly 200 points meanwhile BSE Sensex also fell nearly 600 points. In the Nifty 50 pack, only 21 stocks traded in the green, with Indigo and Tech Mahindra gaining over 3 per cent and Bajaj Finance gaining nearly 2 per cent on Monday. Other major gainers included Hindustan Unilever, Maruti, and Shriram Finance, among others. Meanwhile, Wipro, Reliance, and ICICI Bank were the biggest laggards. Market breadth remained sharply negative, with only 782 of the 3,077 traded stocks advancing, while 2,198 declined and 97 ended unchanged as of 11:27 AM on January 19, 2026.
Global Cues: Tariff threat
US President Donald Trump, on Saturday, said that he would charge an import tax of 10 per cent starting in February on goods from eight European countries because of their opposition to America's control of Greenland.
In a post on Truth Social, Trump said that Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland would face the tariff, which would climb to 25 percent on June 1 if a deal is not in place for 'the Complete and Total purchase of Greenland' by the United States. Trump claimed the move is necessary for national security, citing China's and Russia's interest in the territory.
Notably, US markets ended slightly lower on Friday, and Brent crude, the global oil benchmark, climbed 0.16 per cent to USD 64.23 per barrel.
India Inc Earnings
Indic Inc. is currently reproting its third quarter earnings for the financial year 2026. Over the weekend, IT giants like Wipro, and banking heavy weights including HDFC and ICICI Bank reported their quarterly results.
On Monday both Nifty IT and Nifty Bank came under pressure, 0.66 per cent and 0.41 per cent respectively, dragging the overall Nifty 50 below 25,500 due to tepid results.
Among the top losers in Monday’s trading session were Wipro Ltd, which declined nearly 10 per cent, followed by Reliance Industries slipping nearly 4 per cent. Tata Motors Passenger Vehicles also dropped over 3 per cent, while ICICI Bank Ltd. also fell over 3 per cent.
India VIX, which gauges expected market volatility over the next 30 days, surged 6 per cent to 12.05 as of 10:00 am. The rise indicates increasing uncertainty and heightened risk perception among investors.
FIIs Selling
Foreign portfolio investors continued their heavy selling streak, pulling out Rs 4,346.13 crore from Indian equities on January 16, 2026, as per exchange data. FPI sell orders worth Rs 24,505.97 crore far exceeded their purchases of Rs 20,159.84 crore, marking a sharp net outflow that has added to the sustained pressure on the markets.
In contrast, domestic institutional investors stepped in as stabilising buyers, recording a strong net inflow of Rs 3,935.31 crore on the same day, with total purchases of Rs 19,135.42 crore against sales of Rs 15,200.11 crore. The persistent FPI withdrawal amid global uncertainty has been a key factor amplifying volatility and deepening the recent market decline.
Trade Deal Limbo
Another factor weighing on the market is the long‑pending trade agreement between India and the United States, which remains unresolved, even after six rounds of negotiations since March.
The Trump administration has imposed tariffs of up to 50% on Indian goods, including 25% on India's purchases of Russian oil, among the highest levied on any country. India condemned these measures as "unfair, unjustified, and unreasonable."
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
