Mumbai: The BSE Sensex dropped 334.91 points to 81,845.56 on Wednesday. The NSE Nifty went down 92.55 points to 25,139.95. The benchmark equity indices
declined due to increasing geopolitical tensions, weak global markets and unabated foreign fund outflows rattled investors’ sentiment.
Foreign institutional investors continue to sell equities in the domestic market as exchange data showed they offloaded equities worth Rs 2,938.33 crore. The Domestic Institutional Investors (DIIs) invested Rs 3,665.69 crore to buy stocks.
The laggards from the 30-Sensex firms included, Trent, Larsen & Toubro, HCL Tech, Infosys, Bharat Electronics, and ICICI Bank. Gainers included, InterGlobe Aviation, Tata Steel, Eternal, and Sun Pharma.
Shanghai’s SSE Composite index traded with marginal gains, while Japan’s Nikkei 225 index, Hong Kong’s Hang Seng index, and South Korea’s Kospi index traded lower. Brent crude, the global oil benchmark, fell 1.11 per cent to USD 64.19 per barrel.
The US stock markets settled sharply lower on Tuesday. The Nasdaq Composite index plunged 2.39 per cent, S&P 500 declined by 2.06 per cent and Dow Jones Industrial Average dropped 1.76 per cent.
Global-sell off triggered by US-EU tensions
“US equity markets closed sharply lower overnight, with the S&P 500 slipping 2 per cent and the Nasdaq plunging close to 2.5 per cent, marking the worst single-day fall since October. The global sell-off was triggered by renewed trade-war concerns after President Trump escalated tariff threats on select European nations opposing US control over Greenland, with proposed duties rising from 10 per cent in February to 25 per cent by June,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, told PTI.
The tariff threats by US President Donald Trump, relentless selling by Foreign Institutional Investors continue to hit the market sentiment, he added.
On 20 January, the BSE Sensex tanked 1,065.71 points to finish at 82,180.47. The Nifty dropped 353 points to close at 25,232.50.
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