Midday Market: Sensex tanks 400+ points, Nifty breaks 23,150 as volatility rises
Key indices suffered as heavyweights like Reliance Industries (-1.71 per cent), Kotak Mahindra Bank (-2.45 per cent), and Zomato (-9.98 per cent) dragged the market. The India VIX surged by six per cent, indicating heightened market volatility.
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The Indian stock market extended its sharp decline on January 21, with the Sensex plummeting over 800 points and the Nifty slipping below 23,150 during midday trade. At 12:56 PM IST, the BSE Sensex was down 440.88 points or 1.05 per cent, trading at 76,329.24. The broader NSE Nifty lost 149.35 points or 0.64 per cent, to trade at 23,145.80.
Triggers behind the market fall
- Global trade uncertainty: US President Donald Trump’s vague stance on tariff hikes and a possible 25 per cent tariff on Canada and Mexico created uncertainty in global markets.
- Weak Q3 corporate earnings: Zomato’s 57 per cent drop in net profit triggered a 9.98 per cent slide in its stock price, adding pressure on indices.
- FII outflows: Concerns over India’s economic growth and a lack of consistent foreign institutional inflows weighed on sentiment.
- Rising market volatility: The India VIX surged six per cent, signalling heightened investor caution.
Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “Trump 2.0 has kicked off without much clarity on economic decisions. The indication of gradual tariff hikes and a weaker dollar could benefit emerging markets like India, but GDP growth and corporate earnings will be key to sustaining FII flows.”
Sectoral performance and key losers
The Nifty Consumer Durables index led the sectoral decline, down 3.38 per cent, followed by Nifty Realty (-2.67 per cent). Heavyweight losers included Reliance Industries (-1.71 per cent), Kotak Mahindra Bank (-2.45 per cent), and Adani Ports (-2.02 per cent).
Midcap and smallcap indices fell over one per cent each, reflecting widespread weakness. Only three stocks on the Sensex—UltraTech Cement (+0.84 per cent), ITC (+0.51 per cent), and HCL Tech (+0.50 per cent)—managed gains.
Outlook ahead
Market participants remain cautious amid global uncertainties and weak domestic cues. A sustained recovery will depend on improved macroeconomic data and better-than-expected corporate earnings.
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01:11 PM IST