Stock Market Today: Indian equity benchmarks began Wednesday’s session on a cautious note, extending the uneasy mood seen after the previous day’s steep
decline. Weak global signals, most notably a sharp overnight fall in US equities, combined with intensifying trade-war worries, continued to dampen investor confidence. Both frontline indices slipped during the early trade, while attention squarely turned to whether the Nifty can protect its key long-term technical supports after sliding close to its 200-day moving average. In early trade at around 10:48 am IST, the BSE Sensex slipped 718.82 points, or 0.87 per cent, to 81,461.65, while the NSE Nifty50 declined 219.20 points to trade at 25,013.30. Market breadth remained tilted to the downside, with more stocks declining than advancing, reflecting lingering risk aversion despite the relatively shallow opening losses. Volatility stayed elevated as well, with the India VIX climbing above the 13 level, indicating expectations of sharper intraday swings following Tuesday’s heavy correction. Overnight Sell-Off Adds To Pressure The muted start and early trade fall followed a bruising session on Tuesday, January 20when benchmark indices saw deep losses. The Sensex had dropped more than 1,000 points, while the Nifty shed over 1.3 per cent. The sell-off was driven by a combination of renewed global trade tensions, mixed quarterly earnings outcomes and continued selling by foreign institutional investors. Adding to the pressure, Wall Street posted its steepest single-day decline in nearly three months overnight, as fresh tariff threats from US President Donald Trump targeting Europe reignited concerns of a broader global trade war. Asian markets largely mirrored the weak US cues on Wednesday. Investors gravitated toward safe-haven assets, pushing gold prices to record highs, underscoring a widespread risk-off sentiment. Crude oil prices edged lower amid geopolitical uncertainty and expectations of rising US inventories. Tariffs Threat To Indian Stock Market Macro risks continue to dominate the narrative. “There is clear risk-off sentiment in global markets now in response to Trump’s Greenland policy and the threatened tariffs on Europe,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services Limited. He warned that if tariff threats translate into action and provoke retaliation, markets could see further downside. However, he also noted that fairly valued large-cap stocks, particularly in the banking space, may show relative resilience. Foreign investors remained net sellers, extending their selling streak, although domestic institutional buying provided some cushion. On the sectoral front, early gains were seen in select pharma, metals and PSU banking stocks, while IT and private banking counters faced pressure. With global uncertainties and mixed earnings trends persisting, analysts expect markets to stay volatile and driven by headlines in the near term.
