Indian Stocks Plummet Over 1% Due to Global Trends and US Trade Concerns

Synopsis

On January 27, Indian equity markets faced a downturn with the BSE Sensex falling 824 points and the NSE Nifty50 dropping 263 points. This decline was driven by weak global signals and uncertainties surrounding US trade policies, dampening investor sentiment across the board.

Key Takeaways

BSE Sensex fell by 824 points.
NSE Nifty50 decreased by 263 points.
ICICI Bank was the top gainer on both indices.
Media index suffered the largest losses.
Market volatility increased significantly.

Mumbai, Jan 27 (NationPress) The Indian equity markets experienced a significant drop on Monday, driven by weak global signals and lingering uncertainties regarding US trade policies, which adversely affected the sentiment of domestic investors.

At the end of trading, the BSE Sensex lost 824 points, translating to a 1.08 percent decrease, finishing at 75,366. Meanwhile, the NSE Nifty50 fell by 263 points, or 1.14 percent, closing at 22,829.

Among the 30 stocks on the Sensex, only six managed to remain positive. Leading the gainers was ICICI Bank, which saw a 1.75 percent increase, followed by SBI, Hindustan Unilever, Asian Paints, UltraTech Cement, and Maruti Suzuki India.

Conversely, several stocks suffered losses, including Zomato, Tech Mahindra, HCLTech, and Tata Motors.

On the Nifty50, only 10 stocks ended on a positive note. Britannia Industries was the top performer, gaining 1.93 percent, followed by ICICI Bank, Hindustan Unilever, Larsen & Toubro, and Nestle India.

On the downside, Bharat Electronics Limited (BEL) saw a 2.68 percent drop, along with HCLTech, JSW Steel, and Trent.

Overall, sector performance was predominantly negative. The Media index experienced the largest losses, declining by 3.83 percent, followed by the Pharma index, which fell 2.35 percent, and the IT index, down 2.19 percent.

An exception was the PSU Bank index, which managed a slight gain of 0.12 percent.

The broader markets witnessed even steeper declines, with the Nifty Midcap 100 dropping 2.25 percent, and the Nifty Smallcap 100 plummeting 3.51 percent.

As noted by Rupak De from LKP Securities, the index has moved away from its recent consolidation on the daily chart, fostering an atmosphere of pessimism in the Indian equity market.

He stated, “Sentiment is likely to favor bearish trades in the short term, especially as long as the index stays under 23,000. On the downside, the ongoing weakness could potentially push it down to 22,500.”

Meanwhile, Asian markets displayed mixed results. Hong Kong’s Hang Seng Tech Index saw a rise of 2 percent, while Japan’s Nikkei 225 futures fell by 0.6 percent.

The India VIX, which measures market volatility, increased by 7.36 percent to settle at 17.98.

Gold markets exhibited volatility as the first trading session of the week saw profit-taking, with Comex gold facing resistance around $2,770 but maintaining strong support close to $2,750, demonstrating resilience against falling below that level.