On Tuesday, January 21, 2025, Indian equity markets experienced a significant downturn, influenced by global trade uncertainties and domestic earnings reports.
Benchmark Indices Performance:
- BSE Sensex: Dropped 1,235.08 points (1.60%), closing at 75,838.36. - NSE Nifty 50: Fell 320.10 points (1.37%), settling at 23,024.65. citeturn0search0
Sectoral and Broader Market Movements:
- Bank Nifty: Decreased by 779.90 points (1.58%), ending at 48,570.90. - Nifty Midcap 100: Declined 1,271.25 points (2.31%), closing at 53,834.95. - Small-cap and Mid-cap Stocks: Both segments experienced declines of approximately 2.3%. citeturn0news12
Key Sector Performances:
- Realty and Energy: Suffered the most among sectoral indices. - FMCG, IT, and Metals: Ended marginally lower. citeturn0search0
Notable Stock Movements:
- Apollo Hospitals: Shares rose by 2.13%, following an upgrade from Kotak. - Zomato: Dropped 10.5% due to a poor quarterly profit report. - Mankind Pharma: Fell 5.4% after a rating downgrade by Macquarie. - Wipro Ltd.: Declined by 0.62% to ₹298.30, outperforming competitors like MphasiS Ltd. and Tata Consultancy Services Ltd. citeturn0news13 - Maruti Suzuki India Ltd.: Shares fell by 1.11% to ₹11,882.30, yet outperformed some competitors. citeturn0news15 - NTPC Ltd.: Dropped 3.51% to ₹324.25, underperforming compared to peers. citeturn0news16 - HCL Technologies Ltd.: Inched up 0.33% to ₹1,801.70, outperforming the market. citeturn0news17
Market Influences:
The downturn was largely attributed to uncertainty surrounding U.S. President Donald Trump's proposed tariffs, announced shortly after taking office. citeturn0news12 The announcement heightened market volatility, with the volatility index rising to 17, the highest since August 6, 2024.
Investor Impact:
The sell-off wiped out more than ₹7 lakh crore in investor wealth, as market participants reacted to a combination of earnings results and stretched valuations. citeturn0search1
Global Factors:
President Trump's plans to impose tariffs on Mexico and Canada triggered fears of similar actions against other countries, including India, Brazil, and China. citeturn0news12
Crude Oil Prices:
- WTI Crude: Trading at $75.74, down by 0.93%. - Brent Crude: Trading at $79.16, down by 0.76%. citeturn0search0
In summary, the Indian stock market faced a challenging session on January 21, 2025, influenced by global trade policy uncertainties and domestic earnings reports, leading to significant declines across major indices and sectors.
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