At the end of the session, the BSE Sensex declined 1065.7 points or 1.28% to close at 82,180.47, while the NSE Nifty 50 slipped lower by 353 points or 1.38%, settling at 25,232.50.
Here’s how analysts read the market pulse:
Domestic markets remained cautious ahead of the U.S. Supreme Court’s ruling on Trump-era tariffs, with renewed uncertainty over U.S. trade policy prolonging the recent consolidation, said Vinod Nair, Head of Research at Geojit Investments, adding that continued FII outflows, rising U.S. and Japanese bond yields, and a weakening rupee weighed on investor confidence.
“Mid-cap and small-cap stocks underperformed the benchmarks, and sentiment was broadly negative across all sectors. In the near term, market sentiment will hinge on the earnings season, while geopolitical developments and global trade conditions remain important influences,” said Nair.
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US markets
Wall Street’s main indexes slid to a near three-week low on Tuesday, as investors were spooked by fresh tariff threats from President Donald Trump against Europe amid a dispute over control of Greenland.
U.S. traders came back from a market holiday to a risk-off wave already in motion, pushing gold to fresh record highs, dragging stocks lower across the globe and leaving U.S. Treasuries wobbling under renewed selling pressure.
Trump said on Saturday additional 10% import tariffs would take effect on February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Great Britain — all already subject to tariffs imposed by the U.S.
The tariffs would increase to 25% on June 1 and would continue until a deal was reached for the U.S. to purchase Greenland, Trump wrote in a post on Truth Social. Leaders of Greenland, an autonomous territory of Denmark, and Denmark have insisted the island is not for sale.
European Markets
European stocks fell on Tuesday after the U.S. president threatened to reignite a trade war with Europe over Greenland.
President Donald Trump said he no longer thought “purely of Peace” after he did not win the Nobel Peace Prize and reiterated a threat to increase tariffs on EU members Denmark, Finland, France, Germany, Sweden, and the Netherlands, along with Britain and Norway, until the U.S. is allowed to buy Greenland.
EU leaders will discuss options, including tariffs worth 93 billion euros ($109 billion) on U.S. imports, at an emergency summit in Brussels on Thursday.
Stock markets fell, extending Monday’s declines, as the threats from the U.S. reignited a debate over the “Sell America” trade that emerged after Trump’s “Liberation Day” levies announced last April.
Europe’s STOXX 600 was down 1.2% on the day at 1237 GMT, having already fallen 1.2% on Monday, while the MSCI World Equity Index was down 0.2%. The FTSE 100 was down 1%.
Tech View
Bears resumed control as bulls were increasingly marginalised amid ongoing transatlantic trade tensions, said Rupak De, Senior Technical Analyst at LKP Securities, adding that “supports looked fragile as the Nifty kept breaking them on the back of strong institutional selling.”
“Indicators remained in a bearish crossover and are approaching the oversold zone. On the daily chart, the index appears to be drifting towards the 200-DMA. Immediate support is seen around 25,100-25,150. If this level holds, a decent pullback can be expected,” said De.
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Most active stocks in terms of turnover
HDFC Bank (Rs 3,351 crore), Hindustan Zinc (Rs 3,121 crore), Eternal (Rs 2,284 crore), ICICI Bank (Rs 2,072 crore), RIL (Rs 1,848 crore), Hindustan Copper (Rs 1,532 crore) and TCS (Rs 1,407 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: 73.75 crore), YES Bank (Traded shares: 16.54 crore), Ola Electric Mobility (Traded shares: 13.9 crore), Aditya Birla Fashion and Retail (Traded shares: 9.22 crore), Eternal (Traded shares: 8.36 crore), IFCI (Traded shares: 7.19 crore) and Jindal Saw (Traded shares: 6.57 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Shares of Deepak Nitrite, Jindal Saw, Hindustan Zinc, JK Cement, Sun TV, Dalmia Bharat and Krishna Institute of Medical Sciences were among the stocks that witnessed strong buying interest from market participants.
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52 Week high
Over 65 stocks hit their 52-week highs today while 713 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Hindustan Zinc, SBI and Bank of India.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Newgen Software, Data Patterns (India), Ola Electric Mobility, Sobha, UPL, Oberoi Realty and Jyoti CNC Automation.
Sentiment meter bearish
The market sentiments were bearish. Out of the 4,402 stocks that traded on the BSE on Tuesday, 3,503 stocks witnessed declines, 780 saw advances, while 119 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)