At the end of the day, the Sensex was down about 324 points, or 0.39%, at 83,246.18, while the Nifty shed 109 points, or 0.42%, to 25,585.50, as risk appetite waned.
Here’s how analysts read the market pulse:
Global risk appetite weakened after U.S. President Donald Trump announced new tariff threats against eight European nations, reigniting concerns of a potential U.S.–EU trade dispute, said Vinod Nair, Head of Research at Geojit Investments, adding that this development triggered a broad risk‑off mood across global equity markets, prompting investors to rotate toward safe‑haven assets like gold.
“Meanwhile, select Asian markets, especially China, displayed relative resilience, supported by favourable macro indicators and stronger‑than‑expected export‑driven GDP growth. Domestically, sentiment remains cautious amid ongoing FII outflows. With the Q3 earnings season progressing, stock‑specific volatility is likely, particularly where performance has been mixed. Overall, given the blend of global uncertainty and domestic triggers, markets are expected to remain in a consolidation zone,” said Nair.
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US markets
US markets were shut on January 19 as the country observed Martin Luther King Jr Day.
European Markets
In Europe, the STOXX 600 index fell 1.2%. Blue-chip indexes in Frankfurt, Paris and London were down 0.4% to 1.7%.
Trump said he would impose additional 10% levies from February 1 on goods imported from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain, rising to 25% on June 1 if no deal on Greenland was reached.
Major European Union states condemned the tariff threats as blackmail, and France proposed responding with a range of previously untested economic countermeasures. The EU and Britain had agreed trade deals with the U.S. last year.
Tech View
The Nifty remained under bearish control, with the index sustaining below the 20 EMA throughout the session, said Rupak De, Senior Technical Analyst at LKP Securities, adding that intraday volatility persisted, and every rise was sold into and the RSI continued in a bearish crossover and trended lower as the index closed at a multi-day low.
“Market fear remained elevated, as reflected by a spike in India VIX. In the near term, the index may continue to drift lower, with a potential downside target around 25,200, while resistance is placed near 25,700,” said De.
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Most active stocks in terms of turnover
HDFC Bank (Rs 3,543 crore), ICICI Bank (Rs 3,202 crore), RIL (Rs 2,886 crore), Eternal (Rs 2,359 crore), Netweb Technologies (Rs 2,260 crore), Jindal Saw (Rs 2,158 crore) and Tech Mahindra (Rs 1,831 crore) were among the most active stocks on BSE in value terms. Higher activity in a counter in value terms can help identify the counters with highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Traded shares: 56.4 crore), YES Bank (Traded shares: 19.55 crore), Jindal Saw (Traded shares: 12.2 crore), IFCI (Traded shares: 11.2 crore), Punjab National Bank (Traded shares: 8.63 crore), Eternal (Traded shares: 8.36 crore) and Wipro (Traded shares: 6.58 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Shares of Jindal Saw, Welspun Corp, JSW Infrastructure, CG Power and Industrial Solutions, ABB Power, InterGlobe Aviation and Polycab India were among the stocks that witnessed strong buying interest from market participants.
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52 Week high
Over 97 stocks hit their 52-week highs today while 438 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Axis Bank and Bank of India.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Wipro, RBL Bank, IDBI Bank, MRPL, HBL Power, Reliance Infrastructure and Jubilant Pharmova.
Sentiment meter bearish
The market sentiments were bearish. Out of the 4,483 stocks that traded on the BSE on Monday, 3,075 stocks witnessed declines, 1,226 saw advances, while 182 stocks remained unchanged.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)