Indian equities were under heavy pressure on Tuesday as a sell‑off across global equities and persistent foreign fund outflows triggered broad‑based declines. The benchmark Nifty 50 closed below the 25,250 mark and the BSE Sensex lost over 1,000 points. Real estate, auto and information‑technology stocks led the fall, while only a handful of index stocks, notably HDFC Bank and Dr Reddy’s Laboratories, managed to end in the green. The India VIX jumped about 8 %, signaling rising volatility.
Top indices
| Index | Close | Change (pts) | % Change | Notes |
|---|---|---|---|---|
| Nifty 50 | 25,232.50 | −353.0 | −1.38 % | Slipped below key support zones; approached its 200‑day EMA. |
| BSE Sensex | 82,180.47 | −1,065.78 | −1.28 % | Only HDFC Bank ended higher; broad selling elsewhere. |
| Bank Nifty | 59,388.45 | −502.90 | −0.84 % | Relative strength vs. headline index; HDFC Bank’s gains cushioned declines. |
| India VIX (volatility index) | 17.7 (approx.) | +1.3 | +8 % | Rise reflects heightened fear and option‑hedging demand. |
| USD/INR (Rupee) | 90.97 per US$ | −0.06 | Weakening | Rupee slipped near record lows amid outflows. |
Exact closing values for the mid‑cap and small‑cap indices were not available, but both fell sharply.
Sectoral performance
All major sector indices finished in the red. The biggest laggards were real estate, auto and IT. PSU banks, metals and healthcare also corrected.
| Sector index | Direction | Approx. % move |
|---|---|---|
| Nifty Realty | ▼ | −5 % (worst‑performing sector) |
| Nifty Auto | ▼ | −2.5 % |
| Nifty IT | ▼ | −2.1 % |
| Nifty Media, Metals, PSU Bank, Pharma, Oil & Gas, Consumer Durables | ▼ | roughly −1.5 % to −2.0 % |
Broader benchmarks such as the BSE Midcap and Smallcap indices fell around 2.5 %, highlighting damage beyond large caps.
Key statistics and flows
- Advances/Declines – Of the listed stocks on NSE, roughly 748 advanced, over 3,140 declined and about 100 were unchanged, indicating a deep breadth of selling.
- Foreign Institutional Investors (FIIs) – FIIs continued to sell. On Monday (previous trading session) they sold equities worth around ₹3,263 crore, while Domestic Institutional Investors (DIIs) bought approximately ₹4,234 crore. FII net outflows for January so far exceed ₹27,000 crore.
- Currency – The Indian rupee ended around 90.97 per US dollar, down six paise, hitting fresh lows. Persistent FII outflows and global risk aversion hurt the currency.
- Volatility – India VIX rose roughly 8 %, suggesting traders are paying up for downside protection.
- Commodity cues – Brent crude hovered near $77–78 per barrel. Gold prices remained firm around ₹62,500 per 10 g due to a flight to safety.
Top gainers and losers
Nifty 50
| Gainers | % Change | Notes |
|---|---|---|
| Dr Reddy’s Laboratories | +~2 % | Defensive pharma buying amid market turmoil. |
| Tata Consumer Products | +~1.7 % | Continued traction in FMCG segment. |
| HDFC Bank | +~0.5 % | Positive after a large block deal; resilience supported Bank Nifty. |
| Losers | % Change | Notes |
|---|---|---|
| Eternal | −3.4 % | Among the biggest drags on Nifty; profit taking after recent rally. |
| Bajaj Finance | −2.5 % | Financials weighed down by FII selling. |
| Coal India | −2.6 % | Weakness across commodities; profit booking. |
| Adani Enterprises | −2–3 % | Continued correction after sharp gains. |
| Jio Financial Services | −2.1 % | Losses in financial services sector. |
Bank Nifty
| Stock | % Change | Direction |
|---|---|---|
| HDFC Bank | +0.3 % | Only significant gainer; supported index. |
| IndusInd Bank | −4.7 % | Top loser; profit‑booking and weak sentiment. |
| Yes Bank | −4.5 % | Sharp fall amid regulatory concerns. |
| Federal Bank | −2.3 % | Selling extended after recent highs. |
| Canara Bank | −2.0 % | Mid‑tier banks faced pressure. |
What drove the market lower?
- Escalating global trade tensions – US President Donald Trump’s plan to impose 10–25 % tariffs on eight European countries over Greenland sparked fears of a transatlantic trade war. European markets, especially auto and luxury stocks, tumbled; Asian indices like Japan’s Nikkei (−1.03 %), China’s Shanghai Composite (−0.44 %), Hong Kong’s Hang Seng (−0.42 %) and South Korea’s Kospi (−0.2 %) were also negative. With Wall Street closed for Martin Luther King Jr. Day, there was no stabilising overnight cue.
- Weak rupee and FII selling – The rupee continued to weaken, approaching 91 per US$, reflecting currency‑market stress. Persistent FII outflows removed support from domestic equities and kept sentiment cautious.
- Domestic earnings concerns – Disappointing earnings commentary from heavyweights like Reliance Industries and ICICI Bank in the previous session dampened risk appetite. Fresh numbers from J&K Bank, SRF, Indiamart and others were closely watched but did not offset broader worries.
- Rise in volatility – India VIX spiked, signalling traders were hedging against further declines. Technical indicators like the relative strength index (RSI) on Nifty fell into oversold territory but lacked reversal signals.
- Profit‑taking in mid‑ and small‑caps – Valuations in smaller stocks remained elevated even after recent corrections. Many mid‑ and small‑cap counters have dropped 40–50 % from their peaks, making investors hesitant to buy the dip.
Global cues
The dominant global theme was “risk‑off” due to geopolitics. Apart from the US–EU tariff spat over Greenland, traders were wary of renewed U.S. tariffs on Chinese goods and unresolved U.S.–India trade talks. Higher bond yields in the U.S. and Japan signaled tighter financial conditions. Commodity markets remained range‑bound: crude oil held around $77/bbl despite Middle‑East tensions, while gold benefited from safe‑haven demand.
Stocks to watch and corporate updates
- J&K Bank – Q3 FY26 net profit rose ~10.7 % to about ₹588 crore; net interest income fell slightly. Shares were volatile.
- Indiamart Intermesh – Q3 net profit jumped ~55.6 % to ₹188 crore on revenue growth of ~13.4 %. Stock held firm.
- SRF Limited – Reported a 59.7 % increase in Q3 net profit (~₹432 crore). The company remains focused on chemicals and packaging films.
- Persistent Systems, United Spirits, SRF, AU Small Finance Bank, Gujarat Gas, CreditAccess Grameen, Indiamart Intermesh – These firms were scheduled to release Q3 results; traders should monitor their numbers and management commentary.
- Bansal Wire Industries – Reported a ~4 % YoY rise in consolidated net profit to about ₹43 crore; revenue grew ~11 %.
- Aurum PropTech – Swung to profitability with a consolidated net profit of ~₹2.7 crore versus a loss a year ago; revenue nearly doubled.
- Oberoi Realty – Net profit for the quarter was around ₹623 crore, marginally higher year‑on‑year; declared an interim dividend of ₹2 per share.
- Tata Capital – Q3 PAT jumped 39 % YoY to ~₹1,285 crore; assets under management grew 26 % to over ₹2.3 trillion.
- HDFC Bank block deal – A large block trade of about 10 lakh shares contributed to liquidity; the stock ended higher.
- India–UAE agreements – India and the UAE announced strategic defence cooperation and a long‑term LNG procurement deal (0.5 million tonnes per year for HPCL), which may keep defence and energy names in focus.
Technical outlook and tomorrow’s tone (21 January 2026)
- Nifty 50 – The index is approaching its 200‑day exponential moving average (around 25,160) and immediate support around 25,100–25,150. Another support lies near 24,900–25,000. If Nifty holds the 25,100 zone, some short‑covering relief could push it toward 25,500–25,700. A decisive break below 25,000 may invite stop‑loss‑triggered selling toward 24,800. Momentum indicators remain oversold but no bullish reversal pattern has formed.
- Bank Nifty – Displaying relative resilience. Immediate support sits at 59,500; deeper support around 59,200–58,800. Resistance levels are near 60,000 and 60,400. Sustaining above 59,500 may allow for a rebound, but a close below that could shift the bias negative.
- India VIX – Elevated volatility is likely to persist. A further rise would indicate continued nervousness and could cap upside attempts.
- Expected tone for Wednesday – The market is likely to remain cautious to negative with intraday volatility. Global cues will continue to dominate sentiment; any clarity on US‑EU tariffs or progress in US‑India trade talks could trigger reactions. Traders should adopt a level‑based approach, avoiding aggressive positions and using tight stop‑losses. Long‑term investors may use further dips to accumulate quality stocks gradually.
